Question: how to answer this question ? how to add npv to a firms value ? what formula do i use ? Quest ion 3 1.

how to answer this question ? how to add npv to a firms value ? what formula do i use ?

how to answer this question ? how to add npv to a

Quest ion 3 1. Suppose the real interest rate were 10% per year. What is the NPV of an investment that costs $ 10 today and pays 5 11 in one year. $12 in two years and $13 in 3 years? 2. Suppose a. rm has 100 shares and is trading at $1 per share, what's the value of the rm? 3. Suppose the rm encounters a. project with an N PV of $10, including upfront nancing of Co = $100, what's the new value of the rm? 4. Suppose the rm sells equity to raise $100 and makes the investment. 5. Would extra. cash holdings change the result? 6. Would dividend payouts change the result

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