You have an opportunity to invest $50,600 now in return for $60,800 in one year. If your cost of capital is 7.9%​, what is the NPV of this​ investment?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 20EA: Towson Industries is considering an investment of $256,950 that is expected to generate returns of...
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You have an opportunity to invest

$50,600

now in return for

$60,800

in one year. If your cost of capital is

7.9%​,

what is the NPV of this​ investment?

You have an opportunity to invest $50,600 now in return for $60,800 in one year. If your cost of capital is 7.9%, 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 $50,600 now in return for $60,800 in one year. If your cost of capital is 7.9%, what is the NPV of this investment? The NPV will be $ (Round to the nearest cent.)
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