If the interest rate is 7%, the NPV of alternative #1 is closest to:
a. $357,000
b. $350,000
c. $375,500
d. $400,000
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.