You are trying to value the following investment opportunity: The investment will cost you $22,619 today. In exchange for your investment you will receive monthly cash payments of $4,979 for 8 months. The first payment will occur at the end of the first month. The applicable effective annual interest rate for this investment opportunity is 8%. Calculate the NPV of this investment opportunity. Round to two decimals (do not include the $-sign in your answer).

You are trying to value the following investment opportunity: The investment will cost you $22,619 today. In exchange for your investment you will receive monthly cash payments of $4,979 for 8 months. The first payment will occur at the end of the first month. The applicable effective annual interest rate for this investment opportunity is 8%. Calculate the NPV of this investment opportunity. Round to two decimals (do not include the $-sign in your answer).

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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