A firm has an opportunity to invest $95,000 today that will yield $109,250 in one year. If interest rates are 4% what is...
A firm has an opportunity to invest $95,000 today that will yield $109,250 in one year. If interest rates are 4% what is the net present value (nPV) of this investment. ( please show steps).
Homework Answers
Ans $ 105048.08
NPV = Future Value / ( 1 + rate of interest)^no of years
= 109250 / (1 + 4%)^1
= $ 105048.08
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