Question
You have income of $20,000 in Period 0 and $42,000 in Period 1. An investment opportunity that costs $15,000 in Period 0 is worth $18,000
You have income of $20,000 in Period 0 and $42,000 in Period 1. An investment opportunity that costs $15,000 in Period 0 is worth $18,000 in Period 1. The market interest rate is 6%. What is your maximum possible consumption in Period 1 if you consume $16,000 in Period 0 and follows the NPV rule?
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Foundations Of Financial Markets And Institutions
Authors: Frank J Fabozzi, Franco G Modigliani, Frank J Jones
4th Edition
0136135315, 978-0136135319
