Marjorie Jessup has some free cash and is looking at two different investment options. Price paid today Security Boudreaux Shrimp Farm Nelson Auto Support $8,850 $7,460 Cash received at end-of-year $9,115 $8,206 Marjorie can only take on one investment and has decided to use the NPV decision rule to make her choice. If her opportunity cost is 5%, what is the NPV of the best investment?

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
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Marjorie Jessup has some free cash and is looking at two different investment options.
Security
Boudreaux Shrimp
Farm
Nelson Auto
Support
Price paid
today
$8,850
$7,460
Cash received at
end-of-year
$9,115
$8,206
Marjorie can only take on one investment and has decided to use the NPV decision rule to make her choice. If her
opportunity cost is 5%, what is the NPV of the best investment?
Transcribed Image Text:Marjorie Jessup has some free cash and is looking at two different investment options. Security Boudreaux Shrimp Farm Nelson Auto Support Price paid today $8,850 $7,460 Cash received at end-of-year $9,115 $8,206 Marjorie can only take on one investment and has decided to use the NPV decision rule to make her choice. If her opportunity cost is 5%, what is the NPV of the best investment?
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