If you paid the amount in a what is the net present value


An investment pays $2,000 at the end of year 1, $3,000 at the end of year 3, and $5,000 at the end of year 7.

a. How much would you pay for this investment to earn an effective annual internal rate of return of 3%?

b. If you paid the amount in a., what is the net present value using an effective annual interest rate of 5%?

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Financial Management: If you paid the amount in a what is the net present value
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