5. If you invest £200 now and want it to double in amount (i.e., grow to £400), how long will you need to deposit it for (to the nearest year), if the investment account available to you gives 3% interest per year?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 20P
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5. If you invest £200 now and want it to double in amount (i.e., grow to £400), how
long will you need to deposit it for (to the nearest year), if the investment account
available to you gives 3% interest per year?
6. If a project requires an initial current investment of £100 and promises to raise
£121 after one year, what is this project’s Net Present Value (NPV) if your
discount rate is 10% per year?

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