Assume an individual makes a lump sum investment at the beginning of year one of $3,771. The expected return on this investment is $7,844 (after tax) to be received as a single amount at the end of year 7. The investor's discount rate, for an alternative safe investment, is 12.39 percent after tax. What is the net present value of the investment under consideration?

Answer rating: 100% (QA)

To calculate the net present value NPV of the investment we need to discount the ex... View the full answer