Assume that the firm invests $100,000 today and $50,000 three years from now to get $25,000...

 

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Assume that the firm invests $100,000 today and $50,000 three years from now to get $25,000 at Year 1, $35,000 at Year 2, $45,000 at Year 3, $50,000 at Year 4, $55,000 at Year 5, and $45,000 at Year 6. What's the Net Present Value of this investment? Assume the interest(discount) rate of 10.1%. Assume that the firm invests $100,000 today and $50,000 three years from now to get $25,000 at Year 1, $35,000 at Year 2, $45,000 at Year 3, $50,000 at Year 4, $55,000 at Year 5, and $45,000 at Year 6. What's the Net Present Value of this investment? Assume the interest(discount) rate of 10.1%.

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To find the Net Present Value NPV of this investment we need to discount each future cash flow ba... View the full answer