question archive You are offered an investment with returns of $ 1,927 in year 1, $ 4,076 in year 2, and $ 4,575 in year 3
You are offered an investment with returns of $ 1,927 in year 1, $ 4,076 in year 2, and $ 4,575 in year 3
Subject:FinancePrice:2.84 Bought3
You are offered an investment with returns of $ 1,927 in year 1, $ 4,076 in year 2, and $ 4,575 in year 3. The investment will cost you $ 8,775 today. If the appropriate Cost of Capital is 6.8 %, what is the Net present Value of the investment? with the financial calculator
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
NPV=$358.322
Step-by-step explanation
NPV= cash flow/(1+i)t -initial investment
rate=6.8%
=0.068
initial investment $8775
= 1,927/1.068+ 4,076/1.0682+4,575/1.0683 -8,775
1804.307+3573.432+3755.583-8775
=$358.322
