You have an opportunity to invest $100,000 now in return for $79,600 in one year and $30,300 in two years. If your cost of capital is 9.4%, what is the NPV of this investment? The NVP will be $_____ (Round to the nearest cent)

You have an opportunity to invest $100,000 now in return for $79,600 in one year and $30,300 in two years. If your cost of capital is 9.4%, what is the NPV of this investment? The NVP will be $_____ (Round to the nearest cent)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

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You have an opportunity to invest $100,000 now in return for $79,600 in one year and $30,300 in two years. If your cost of capital is 9.4%, what is the NPV of this investment?

The NVP will be $_____ (Round to the nearest cent)

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