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Your cousin owns her own business and is considering a new investment. If she undertakes the investment, it will pay $100,000 at the end of
Your cousin owns her own business and is considering a new investment. If she undertakes the investment, it will pay $100,000 at the end of each of the next 3 years (years 1, 2, and 3 ). The opportunity requires an initial (year 0 ) investment of $20,000 plus an additional investment at the end of the third year (year 3 ) of $18,000. What is the NPV of this opportunity if the cost of capital is 11% per year? $211,210.0 $262,000.0 $212,514.3 $206,371.5
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