Marian Plunket owns her business and is considering an investment. If she undertakes the investment,...
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Marian Plunket owns her business and is considering an investment. If she undertakes the investment, it will pay 5520 at the end of the next 3 years. The opportunity requires an initial investment of $1,380 plus an additional investment at the end of the second year of 6,900. What is the NPV of this opportunity if the interest rate is 2.2% per year? Should Marian take it? What is the NPV of this opportunity if the interest rate is 2.2% per year?
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