A firm has $10m ($1m shares @ $10 each). The firm is planning to invest this $10m in a year-long project that will generate $14m after one year. If the opportunity rate is 13%, find NPV of the investment and the expected share price after the investment decision?

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of the investment we need to discount the future cash flows t... View the full answer