An investor pays 100000 today for a 4-year investment that, Ask an Expert

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An investor pays 100000 today for a 4-year investment that returns cash-flows of 60000 at the end of each of years 3 and 4. The cash-flows can be reinvested at 4.0% per year effective.

If the preferred rate of interest at which the investment is to be valued is 5.0% per year effective, then what is the net present value of the 4-year investment today? The cash-flows get reinvested at a particular interest rate. Round your answer to the nearest whole number.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92424540

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