Work out the net present value of the following investments. The risk-free rate is 3%, and the average return on the mar
Posted: Wed Mar 09, 2022 8:40 am
Work out the net present value of the following investments. The
risk-free rate is 3%, and the average return on the market index is
7%
You invest £1,000 in cash in a 0.8-beta project. The project
uses a machine you already own, costing £500 last year. You can
sell the machine this year for £300. The cash flow from the project
is £400 annually in years one through four. The machine is
worthless in year four
risk-free rate is 3%, and the average return on the market index is
7%
You invest £1,000 in cash in a 0.8-beta project. The project
uses a machine you already own, costing £500 last year. You can
sell the machine this year for £300. The cash flow from the project
is £400 annually in years one through four. The machine is
worthless in year four