Marian Plunket owns her own business and is considering an investment. If she undertakes the​ investment, it will pay $4,600 at the end of each of the next 3 years. The opportunity requires an initial investment of $1,150 plus an additional investment at the end of the second year of $5,750. What is the NPV of this opportunity if the interest rate is 1.9%per​ year? Should Marian take​ it?

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 11E
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Marian Plunket owns her own business and is considering an investment. If she undertakes the​ investment, it will pay $4,600 at the end of each of the next 3 years. The opportunity requires an initial investment of $1,150 plus an additional investment at the end of the second year of $5,750. What is the NPV of this opportunity if the interest rate is 1.9%per​ year? Should Marian take​ it?

What is the NPV of this opportunity if the interest rate is per​ year? 

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