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You buy $1,000 of shares today, sell some of the shares in 3 years for $500 and sell the balance of the shares in 8
You buy $1,000 of shares today, sell some of the shares in 3 years for $500 and sell the balance of the shares in 8 years for $900. (c) The NPV can be positive or negative, depending on the interest rate. For the transaction above, describe what happens to the NPV when i = 0 and as i increases to infinity. Your description should be in the context of the transaction, not just what happens mathemati- cally. You may include any Excel screenshots or graphs if you deem it necessary. [5]
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