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You have an opportunity to invest $103,000 now in return for $80,200 in one year and...

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Finance

You have an opportunity to invest $103,000 now in return for$80,200 in one year and $29,300 in two years. If your cost ofcapital is 8.9%?, what is the NPV of this? investment?

The NPV will be ?$____. ?(Round to the nearest? cent)

Answer & Explanation Solved by verified expert
3.6 Ratings (648 Votes)

Calculation of NPV:
Time Cashflow PVF @8.9% PV
               -   -103000                                      1.00                              -1,03,000.00
          1.00 80200                                 0.9183                                   73,645.55
          2.00 29300                                 0.8432                                   24,706.54
                                   -4,647.92
NPV is -$4647.92

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