Southern Pole is developing a special vehicle for Antarctic exploration. The development requires investments of $100,000 today, $200,000 in 1 year from today and $300,000 in 2 years from today. Net returns for the project are expected to be $96,000 at the end of year over the next 15 years. If the company requires a rate of return of 12% compounded annually-find the NPV of the project. (Chapter 16.2)
Southern Pole is developing a special vehicle for Antarctic exploration. The development requires investments of $100,000 today, $200,000 in 1 year from today and $300,000 in 2 years from today. Net returns for the project are expected to be $96,000 at the end of year over the next 15 years. If the company requires a rate of return of 12% compounded annually-find the NPV of the project. (Chapter 16.2)
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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Southern Pole is developing a special vehicle for Antarctic exploration. The development requires investments of $100,000 today, $200,000 in 1 year from today and $300,000 in 2 years from today. Net returns for the project are expected to be $96,000 at the end of year over the next 15 years. If the company requires a rate of return of 12% compounded annually-find the NPV of the project. (Chapter 16.2)
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