A sum of $2 million is invested today in a project which is guaranteed to provide...

 

Transcribed Image Text:

A sum of $2 million is invested today in a project which is guaranteed to provide a return of $1.5 million at the end of five years and a further $1.25 million at the end of six years. What is the net present value if the discount rate is 4.5% compounded annually? A sum of $2 million is invested today in a project which is guaranteed to provide a return of $1.5 million at the end of five years and a further $1.25 million at the end of six years. What is the net present value if the discount rate is 4.5% compounded annually?

Answer rating: 100% (QA)

Net present value is solved using a financial calcul... View the full answer