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Your investment will pay you $15,000 at the end of one year, $14,000 at the end of the following year, and $24,000 at the end
Your investment will pay you $15,000 at the end of one year, $14,000 at the end of the following year, and $24,000 at the end of the year after that (three years from today). The interest rate is 4%. (a) What is the present value? (b) What will be the future value three years later ? (c) Assuming that the investment costs $40,000 today, what is the net present value (NPV) of the investment?
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