Homework Help is Here – Start Your Trial Now!
Business
Finance
Let say a person have bought a bus worth of Rs 7,300,000 to rent it out in the market. The bus is said to bring an inflow of Rs.240, 000 in first two years, 260,000 in 3rd and 4th year, while 75% of 4th year in fifth year. Assuming the discount rate to be 17% for 2 years and then it will be 15%. What will pe the net present value?

Let say a person have bought a bus worth of Rs 7,300,000 to rent it out in the market. The bus is said to bring an inflow of Rs.240, 000 in first two years, 260,000 in 3rd and 4th year, while 75% of 4th year in fifth year. Assuming the discount rate to be 17% for 2 years and then it will be 15%. What will pe the net present value?

Essentials Of Investments
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
See similar textbooks
icon
Related questions
Question

Qd 252.

Let say a person have bought a bus worth of Rs 7,300,000 to rent it out in the market. The bus is said to bring an inflow of Rs.240, 000 in first two years, 260,000 in 3rd and 4th year, while 75% of 4th year in fifth year. Assuming the discount rate to be 17% for 2 years and then it will be 15%. What will pe the net present value?
Transcribed Image Text:Let say a person have bought a bus worth of Rs 7,300,000 to rent it out in the market. The bus is said to bring an inflow of Rs.240, 000 in first two years, 260,000 in 3rd and 4th year, while 75% of 4th year in fifth year. Assuming the discount rate to be 17% for 2 years and then it will be 15%. What will pe the net present value?
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS