Salvatore has the opportunity to invest in a scheme which will pay $7,500 at the end...

Salvatore has the opportunity to invest in a scheme which will pay

$7,500

at the end of each of the next 5 years. He must invest

$15,000

at the start of the first year and an additional

$15,000

at the end of the first year. What is the present value of this investment if the interest rate is

4%?

Expert Solution

PV FACTOR = 1/(1+r)^n

FOR FIRST YEAR = 1/(1+0.04)^1 = 0.96154 AND SO ON

jeff jeffy answered 10 months ago

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