You have an opportunity to invest $100,000 now in return for $80,000 in one year and $30,000 in two years. If your cost of capital is 9.0%, what is the NPV of this investment? The NPV will be $ (Round to the nearest cent.)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...
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You have an opportunity to invest $100,000 now in return for $80,000 in one year and $30,000 in two years. If your cost
of capital is 9.0%, what is the NPV of this investment?
The NPV will be $
(Round to the nearest cent.)
Transcribed Image Text:You have an opportunity to invest $100,000 now in return for $80,000 in one year and $30,000 in two years. If your cost of capital is 9.0%, what is the NPV of this investment? The NPV will be $ (Round to the nearest cent.)
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