Question : Marian Plunket owns her own business and considering an investment. : 3459
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $40,000
at the end of each of the next 3 years. The opportunity requires an initial investment of $10,000
plus an additional investment at the end of the second year of $50,000.
What is the NPV of this opportunity if the interest rate is 8% per year? Should Marian take it?