. If money can be invested at 10%, find the NPV and PI for these investments and determine if the investment is worthwhile using the two techniques.
. If money can be invested at 10%, find the NPV and PI for these investments and determine if the investment is worthwhile using the two techniques.
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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Question
An investment proposal involves an initial payment now of GH¢40,000
and then returns of GH¢10,000, GH¢30,000 and GH¢20,000 respectively
in 1, 2 and 3-years’ time. If money can be invested at 10%, find the
and PI for these investments and determine if the investment is
worthwhile using the two techniques.
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