Question: Your boss has asked you to determine the present value of an asset. The discount rate is 10%. The cash outflow is $100 in year

Your boss has asked you to determine the present value of an asset.

The discount rate is 10%.

The cash outflow is $100 in year 0 and $50 in year 1, 2 and 3.

Your boss has also told you that he can invest in a safe bond that provides an NPV of $30


What investment should you pick and why?

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