You have an opportunity to invest $51000 now in return for $601000 in one year. If...

You have an opportunity to invest $51000 now in return for $601000 in one year. If your cost of capital is 7.6%, what is the NPV of this investment?

Expert Solution

NPV = -Initial investment + Present value of cash flow

NPV = -$51000 + $601000/1.076

NPV = $507,550.19

jeff jeffy answered 2 years ago

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You have an opportunity to invest $51000 now in return for $601000 in one year. If...

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