Net present value of a stream of cash flow, Finance Basics

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Net present value of a stream of cash flow

You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1500 two years from now, and $10,000 ten years from now.

a) What is the NPV of the opportunity if the interest rate is 6% per year? Should you take the opportunity?

b) What is the NPV of the opportunity if the interest rate is 2% per year? Should you take it now?

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Finance Basics: Net present value of a stream of cash flow

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Finance Basics: Net present value of a stream of cash flow

Reference No:- TGS053234

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Finance Basics: Net present value of a stream of cash flow

Reference No:- TGS053234

Recent Questions Asked Finance Basics

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