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Problem:

A friend offers to give you 10 payments of $1,500 at annual time periods zero through 10 except year three if you give him $13,500 at year three.

Required:

What is the NPV of this opportunity if i=20%?

A) -891.13

B) -979.26

C) -609.12

D) -546.73

Clarify comprehensively and specify all computation and methods.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91146753

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