Nielson Motors is considering an opportunity that requires an investment of $1,000,000 today and will provide...

Nielson Motors is considering an opportunity that requires an investment of $1,000,000 today and will provide $250,000 one year from now, $450,000 two years from now, and $650,000 three years from now. If the appropriate interest rate is 10%, then the NPV of this opportunity is closest to:

	A.	$350,000
	B.	-$88,000
	C.	$1,350,000
	D.	$88,000

Expert Solution

Therefore, NPV is close to $88,000. Hence the correct answer is option D.

jeff jeffy answered 3 years ago

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