You have an opportunity to invest $103,000 now in return for $80,200 in one year and...

You have an opportunity to invest $103,000 now in return for $80,200 in one year and $29,300 in two years. If your cost of capital is 8.9%, what is the NPV of this investment?

The NPV will be $____. (Round to the nearest cent)

Expert Solution

Calculation of NPV:

Time	Cashflow	PVF @8.9%	PV
-	-103000	1.00	-1,03,000.00
1.00	80200	0.9183	73,645.55
2.00	29300	0.8432	24,706.54
			-4,647.92
NPV is -$4647.92

jeff jeffy answered 1 year ago

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You have an opportunity to invest $103,000 now in return for $80,200 in one year and...

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