Yr Cashflow D.F(14%) Present Value
0 (25,000) X 1 (25,000)
1-7 ** 6,428.6 X 4.2883 27,567.6
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a ) NPV = +$2,567.6
b) SO it is worthy to go ahead with the proposed investment
** 45,000/7 = Return per year 6,428.6
Halolye is considering the option of investing $ 25,000 now in a project for a return of $ 45,000 in 7 years time. The rate of interest is 14%
a) Find the NPV of the proposed investment.
b) Will it be worth it for her to go ahead with this investment?
