Question
In: Finance
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment,...
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $4,280 at the end of each of the next 3 years.
The opportunity requires an initial investment of $1,070 plus an additional investment at the end of the second year of $5,350.
What is the NPV of this opportunity if the interest rate is 2.1% per year?
Solutions
Expert Solution
Solution:
The Net present value ( NPV ) of the opportunity is = $ 6,116.83
= $ 6,117 ( when rounded off to the nearest whole number )
Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.
jeff jeffy answered 1 year agoRelated Solutions
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