An investment Opportunity costs $250,000 upfront and provides the following cashflows: $100,000 at the end of the third
Posted: Mon Nov 15, 2021 5:16 pm
An investment Opportunity costs $250,000 upfront and provides
the
following cashflows: $100,000 at the end of the third year,
$150,000 at the
end of the fifth year, $200,000 at the end of the sixth year. What
is the net
present value (NPV) of this investment if the cost of capital is
5%?
◦Find NPV and decision
◦Find IRR and decision
the
following cashflows: $100,000 at the end of the third year,
$150,000 at the
end of the fifth year, $200,000 at the end of the sixth year. What
is the net
present value (NPV) of this investment if the cost of capital is
5%?
◦Find NPV and decision
◦Find IRR and decision