Suppose that we make contributions to a fund of $125 today and $750 in two years for a return of $1000 in one year. First write the Net Present Value as a function of the discount factor ν. Secondly, use the NPV to calculate the yield rate of this investment (select the larger value for i. Finally, explain whether or not this is a good investment for us.

Cornerstones of Cost Management (Cornerstones Series)
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Chapter19: Capital Investment
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Problem 13E: Buena Vision Clinic is considering an investment that requires an outlay of 600,000 and promises a...
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Suppose that we make contributions to a fund of $125 today and $750 in two
years for a return of $1000 in one year. First write the Net Present Value as a function of the discount factor ν. Secondly, use the NPV to calculate the yield rate of this investment (select the larger value for i. Finally, explain whether or not this is a good investment for us. Please show all work

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