Question: NET PRESENT VALUE (BASIC) 20) You are making a S25,000 investment and feel that a 12 percent rate of return is reasonable given the nature
NET PRESENT VALUE (BASIC) 20) You are making a S25,000 investment and feel that a 12 percent rate of return is reasonable given the nature of the risks involved. You feel that you will receive at least S100 in the first year, S36,000 in the second year, and potentially could see a cash outflow of $5,000 in the third year. What is the net present value of this investment given your expectations? a. -$919.28 b. -$863.20 c. $229.37 d. $268.33 e. $708.09
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