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Let say a person have bought a bus worth of Rs 7,300,000 to rent it out in the market. The bus is said to bring an inflow of Rs.240, 000 in first two years, 260,000 in 3rd and 4th year, while 75% of 4th year in fifth year. Assuming the discount rate to be 17% for 2 years and then it will be 15%. What will pe the net present value?

Let say a person have bought a bus worth of Rs 7,300,000 to rent it out in the market. The bus is said to bring an inflow of Rs.240, 000 in first two years, 260,000 in 3rd and 4th year, while 75% of 4th year in fifth year. Assuming the discount rate to be 17% for 2 years and then it will be 15%. What will pe the net present value?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Let say a person have bought a bus worth of Rs 7,300,000 to rent it out in the market. The bus is said to bring an inflow of Rs.240, 000 in first two years, 260,000 in 3rd and 4th year, while 75% of 4th year in fifth year. Assuming the discount rate to be 17% for 2 years and then it will be 15%. What will pe the net present value?
Transcribed Image Text:Let say a person have bought a bus worth of Rs 7,300,000 to rent it out in the market. The bus is said to bring an inflow of Rs.240, 000 in first two years, 260,000 in 3rd and 4th year, while 75% of 4th year in fifth year. Assuming the discount rate to be 17% for 2 years and then it will be 15%. What will pe the net present value?
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