An up-and-coming band is releasing their first album on Spotify on 3/4/2022. They make an initial investment of $3,200 on 2/28/2022 to have their album put on Spotify. The band will get a check every two weeks from their release date until 5/10/2024. They expect their first check on 3/4/2022 to be $100, and as their music grows in popularity they expect their check amount to increase by 1.6% every pay period. What is the NPV of this project on May 10, 2024 at an 8% rate of return? (Round to the nearest dollar)
An up-and-coming band is releasing their first album on Spotify on 3/4/2022. They make an initial investment of $3,200 on 2/28/2022 to have their album put on Spotify. The band will get a check every two weeks from their release date until 5/10/2024. They expect their first check on 3/4/2022 to be $100, and as their music grows in popularity they expect their check amount to increase by 1.6% every pay period. What is the NPV of this project on May 10, 2024 at an 8% rate of return? (Round to the nearest dollar)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An up-and-coming band is releasing their first album on Spotify on 3/4/2022. They make an initial investment of $3,200 on 2/28/2022 to have their album put on Spotify. The band will get a check every two weeks from their release date until 5/10/2024. They expect their first check on 3/4/2022 to be $100, and as their music grows in popularity they expect their check amount to increase by 1.6% every pay period. What is the NPV of this project on May 10, 2024 at an 8%
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