Question
You have been offered a unique investment opportunity. If you invest $25,000 today, you will receive $$1,250 one year from now, $3,750 two years from
You have been offered a unique investment opportunity. If you invest $25,000 today, you will receive $$1,250 one year from now, $3,750 two years from now, and $25,000 ten years from now.
a. What is the NPV of the investment opportunity if the interest rate is 12% per year? Should you take the opportunity?
b. What is the NPV of the investment opportunity if the interest rate is 8% per year? Should you take the opportunity?
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The Evolution Of Finance
Authors: Barbara Guth
1st Edition
1633377261, 978-1633377264
