Net returns from an investment are estimated to be $13,000 per year for 12 years. The investment involves an immediate outlay of $50,000 and a further outlay of $30,000 after 6 years. The investments are estimated to have a residual value of $10,000 after 12 years. Find the net present value at 20%.

Net returns from an investment are estimated to be $13,000 per year for 12 years. The investment involves an immediate outlay of $50,000 and a further outlay of $30,000 after 6 years. The investments are estimated to have a residual value of $10,000 after 12 years. Find the net present value at 20%.

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

Problem 1PS

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Bha
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