Question
You have been offered a unique investment opportunity. If you invest $20,000 today, you will receive $1,000 one year from now, $3,000 two years from
You have been offered a unique investment opportunity. If you invest $20,000 today, you will receive $1,000 one year from now, $3,000 two years from now, and $20,000 ten years from now.
a. What is the NPV of the investment opportunity if the interest rate is 10% per year? Should you take the opportunity? (round to nearest dollar)
b. What is the NPV of the investment opportunity if the interest rate is 6% per year? Should you take the opportunity?
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The Ascendancy Of Finance
Authors: Joseph Vogl, Simon Garnett
1st Edition
1509509305, 978-1509509300
