You have an opportunity to invest $102,000 now in return for $80,200 in one year and $29,700

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You have an opportunity to invest $102,000 now in return for $80,200 in one year and $29,700 in two years. If your cost of capital is 8.8%, what is the NPV of this investment?

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Posted Date: Oct 03, 2019 11:27 PM

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You have an opportunity to invest $102,000 now in return for $80,200 in one year and $29,700

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ANSWER IS To calculate the NPV of the investment we need to discount the future cash flows back t... View the full answer

Fundamentals of Corporate Finance

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