Question: Please solve by hand and show all work. Hint : Decide how much to invest in each opportunity now (time t=0). That is, you cannot
Please solve by hand and show all work.
Hint: Decide how much to invest in each opportunity now (time t=0). That is, you cannot wait until year t > 0 to decide to invest.
Let now be time t = 0. If we receive/pay a t = 0,1,2,...,T years from now, the net present value (NPV) of this stream of cash flows is T Ct (1+r) t=0 Where 0
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