An investment requires $16,000 today, and produces the first cash flow of $800 in two years (year

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An investment requires $16,000 today, and produces the first cash flow of $800 in two years (year 2). Cash flow is expected to grow at 2% per year after year 2.

a) What is the NPV of this investment if the discount rate is 6% ?

NPV =

b) What is the rate of return of this investment?

Rate of return =

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Practical financial management

ISBN: 978-0324422634

5th Edition

Authors: William r. Lasher

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Posted Date: Apr 21, 2022 05:15 AM

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An investment requires $16,000 today, and produces the first cash flow of $800 in two years (year

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a NPV 2... View the full answer

Practical financial management

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