An investor invests 10,000,000 in a new factory, which takes a year to build. After construction...

 

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An investor invests £10,000,000 in a new factory, which takes a year to build. After construction is finished, the factory will generate an income of £122,000 monthly, received in arrears, for 15 years. Compute the net present value of the investment project at an interest rate of 2% p.a. 3 An investor invests £10,000,000 in a new factory, which takes a year to build. After construction is finished, the factory will generate an income of £122,000 monthly, received in arrears, for 15 years. Compute the net present value of the investment project at an interest rate of 2% p.a. 3

Answer rating: 100% (QA)

To compute the net present value NPV of the investment project we need to discount all future cash f... View the full answer