Munaining Time: 57:07 50Suppose you make a $5,000 investment that will neturn $3,000 in year 2 and another $3.500 in year 4. With an interest rate of 4.5 hat is the NPV of thisproject?$2,162.50$1,500.00S682.16$247.34

NPV is net of present value of future cash flows and cash outflows. Future cash flows are discounted…

Answered: Suppose you make a $5,000 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

Section: Chapter Questions

Problem 1PS

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Suppose you make a $5,000 investment that will return $3,000 in year 2 and another $3,500 in year 4, With an interest rat of 4.5%int is the NPVof ths project?