1. An investment costs $1,000 today but will produce cash flows of $400 in year...
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Finance
1. An investment costs $1,000 today but will produce cash flows of $400 in year 1, $500 in year 2, and $600 in year 3. If interest rates are 10%, what is the NPV of this investment?
2. Investment A costs $2,000 today, with cash inflows of $400, $400, $400, and $1,200 in years 14 respectively. Investment B costs $1,000 today and will have one cash inflow of $1,100 in 1 year. If interest rates are 8%, what is the NPV of investment A?
Please show manual calculation (not using excel)
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