A business promises to pay the investor of $2 000 today with a payment of $500 in one year's time, $1 000 in two years' time and $1 000 in three years' time. What is the net present value of this business opportunity if the interest rate is 5% per year?
A) $247.06
B) $256.88
C) $253.78
D) $261.07
Correct Answer:
Verified
Q1: A perpetuity will pay $2 500 per
Q2: $12 500 is invested in a certain
Q4: Consider the following timeline detailing a stream
Q5: A homeowner in Queensland has the opportunity
Q5: The present value (PV) of a stream
Q6: An investment pays you $20 000 at
Q7: Consider the following timeline detailing a stream
Q9: Consider the following timeline detailing a stream
Q10: A perpetuity has a PV of $32
Q11: A lottery winner will receive $1 million
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents