Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it

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Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $40,000 at the end of each of the next three years. The opportunity requires an initial investment of $10,000 plus an additional investment at the end of the second year of $50,000. What is the NPV of this opportunity if the interest rate is 9% per year? Should Marian take it?

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Corporate Finance The Core

ISBN: 9781292158334

4th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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