Question: You're making something and your analysts forecast that it will cost you $750,000 immediately (time 0), and it will cost you $750,000 in one year

You're making something and your analysts forecast that it will cost you $750,000 immediately (time 0), and it will cost you $750,000 in one year (time 1). They forecast you can sell the building for $2,900,000 in two years (time 2). If your discount rate is i=8%, What is the net present value of this investment?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!