Question
You have been offered two investments options. Find the NPV (16.2) of both with a cost of money of 9% compounded annually and determine which
You have been offered two investments options. Find the NPV (16.2) of both with a cost of money of 9% compounded annually and determine which is preferable.
Investment A: Requires a cash outlay of $15,000 today, but returns a single payment of $80,000 in exactly 7 years.
Investment B: Requires a cash outlay of $2,000 in two years, but returns $1,000 at the end of every quarter for 12 years.
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
9th Edition
0324656122, 978-0324656121
