For the following cash flow series, which of the statements is true? Year Future Value 0 $200.00 1 $200.00 2 $200.00 a) The NPV is $561.60 at a discount rate of 6%. b) The NPV is $556.65 at a discount rate of 8%. c) The IRR is 9.81%. d) The payback is 2 years. e) None of the above.

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
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For the following cash flow series, which of the statements is true?

Year Future Value 0 $200.00 1 $200.00 2 $200.00

  1. a) The NPV is $561.60 at a discount rate of 6%.
  2. b) The NPV is $556.65 at a discount rate of 8%.
  3. c) The IRR is 9.81%.
  4. d) The payback is 2 years.
  5. e) None of the above.

 

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