Problem: You have the opportunity to make an investment of $900,000. If you make this investment, you make $12,000, $250,000 and $800,000 one, two and three years from today, respectively. The discount rate is 12%
1) Should you make this investment?
2) What is the NPV (net present value) of this opportunity?
3) If the discount rate is 11%, should you invest? what is the NPV?