SlideShare uma empresa Scribd logo
1 de 1
Baixar para ler offline
An investment costs $1,688 and pays $150 in perpetuity with the first cash flow coming at the
end of each year. If the interest rate is 9% annually, what is the NPV?
Solution
NPV= Present value of calshflow for perpetuity- Current investment
= ($150/0.09)-$1688
= $ 1,666.67-$1688
= ($1.33) 1,666.67

Mais conteúdo relacionado

Mais de akanksha4men

An LBO (leveraged buy-out) means that a private company takes over a.pdf
An LBO (leveraged buy-out) means that a private company takes over a.pdfAn LBO (leveraged buy-out) means that a private company takes over a.pdf
An LBO (leveraged buy-out) means that a private company takes over a.pdfakanksha4men
 
An issue of preferred stock is paying an annual dividend of $5. What.pdf
An issue of preferred stock is paying an annual dividend of $5. What.pdfAn issue of preferred stock is paying an annual dividend of $5. What.pdf
An issue of preferred stock is paying an annual dividend of $5. What.pdfakanksha4men
 
An IT security training program is a part of which of the following .pdf
An IT security training program is a part of which of the following .pdfAn IT security training program is a part of which of the following .pdf
An IT security training program is a part of which of the following .pdfakanksha4men
 
An investor deposited $10,000 into a portfolio at the beginning of t.pdf
An investor deposited $10,000 into a portfolio at the beginning of t.pdfAn investor deposited $10,000 into a portfolio at the beginning of t.pdf
An investor deposited $10,000 into a portfolio at the beginning of t.pdfakanksha4men
 
An investor has two bonds in his portfolio that both have a face val.pdf
An investor has two bonds in his portfolio that both have a face val.pdfAn investor has two bonds in his portfolio that both have a face val.pdf
An investor has two bonds in his portfolio that both have a face val.pdfakanksha4men
 
An introductory psychology class has 9 freshman males, 15 freshman f.pdf
An introductory psychology class has 9 freshman males, 15 freshman f.pdfAn introductory psychology class has 9 freshman males, 15 freshman f.pdf
An introductory psychology class has 9 freshman males, 15 freshman f.pdfakanksha4men
 
An intranet can be found in an organizations internal network or s.pdf
An intranet can be found in an organizations internal network or s.pdfAn intranet can be found in an organizations internal network or s.pdf
An intranet can be found in an organizations internal network or s.pdfakanksha4men
 
an integer is two more than another integer. Twice the lager integer.pdf
an integer is two more than another integer. Twice the lager integer.pdfan integer is two more than another integer. Twice the lager integer.pdf
an integer is two more than another integer. Twice the lager integer.pdfakanksha4men
 
an integer x has property P provided that all integers a and b, when.pdf
an integer x has property P provided that all integers a and b, when.pdfan integer x has property P provided that all integers a and b, when.pdf
an integer x has property P provided that all integers a and b, when.pdfakanksha4men
 

Mais de akanksha4men (9)

An LBO (leveraged buy-out) means that a private company takes over a.pdf
An LBO (leveraged buy-out) means that a private company takes over a.pdfAn LBO (leveraged buy-out) means that a private company takes over a.pdf
An LBO (leveraged buy-out) means that a private company takes over a.pdf
 
An issue of preferred stock is paying an annual dividend of $5. What.pdf
An issue of preferred stock is paying an annual dividend of $5. What.pdfAn issue of preferred stock is paying an annual dividend of $5. What.pdf
An issue of preferred stock is paying an annual dividend of $5. What.pdf
 
An IT security training program is a part of which of the following .pdf
An IT security training program is a part of which of the following .pdfAn IT security training program is a part of which of the following .pdf
An IT security training program is a part of which of the following .pdf
 
An investor deposited $10,000 into a portfolio at the beginning of t.pdf
An investor deposited $10,000 into a portfolio at the beginning of t.pdfAn investor deposited $10,000 into a portfolio at the beginning of t.pdf
An investor deposited $10,000 into a portfolio at the beginning of t.pdf
 
An investor has two bonds in his portfolio that both have a face val.pdf
An investor has two bonds in his portfolio that both have a face val.pdfAn investor has two bonds in his portfolio that both have a face val.pdf
An investor has two bonds in his portfolio that both have a face val.pdf
 
An introductory psychology class has 9 freshman males, 15 freshman f.pdf
An introductory psychology class has 9 freshman males, 15 freshman f.pdfAn introductory psychology class has 9 freshman males, 15 freshman f.pdf
An introductory psychology class has 9 freshman males, 15 freshman f.pdf
 
An intranet can be found in an organizations internal network or s.pdf
An intranet can be found in an organizations internal network or s.pdfAn intranet can be found in an organizations internal network or s.pdf
An intranet can be found in an organizations internal network or s.pdf
 
an integer is two more than another integer. Twice the lager integer.pdf
an integer is two more than another integer. Twice the lager integer.pdfan integer is two more than another integer. Twice the lager integer.pdf
an integer is two more than another integer. Twice the lager integer.pdf
 
an integer x has property P provided that all integers a and b, when.pdf
an integer x has property P provided that all integers a and b, when.pdfan integer x has property P provided that all integers a and b, when.pdf
an integer x has property P provided that all integers a and b, when.pdf
 

Último

General Principles of Intellectual Property: Concepts of Intellectual Proper...
General Principles of Intellectual Property: Concepts of Intellectual  Proper...General Principles of Intellectual Property: Concepts of Intellectual  Proper...
General Principles of Intellectual Property: Concepts of Intellectual Proper...Poonam Aher Patil
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdfQucHHunhnh
 
Activity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdfActivity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdfciinovamais
 
Unit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptxUnit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptxVishalSingh1417
 
1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdfQucHHunhnh
 
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdfUGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdfNirmal Dwivedi
 
Food safety_Challenges food safety laboratories_.pdf
Food safety_Challenges food safety laboratories_.pdfFood safety_Challenges food safety laboratories_.pdf
Food safety_Challenges food safety laboratories_.pdfSherif Taha
 
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...ZurliaSoop
 
psychiatric nursing HISTORY COLLECTION .docx
psychiatric  nursing HISTORY  COLLECTION  .docxpsychiatric  nursing HISTORY  COLLECTION  .docx
psychiatric nursing HISTORY COLLECTION .docxPoojaSen20
 
Kodo Millet PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...
Kodo Millet  PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...Kodo Millet  PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...
Kodo Millet PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...pradhanghanshyam7136
 
Mixin Classes in Odoo 17 How to Extend Models Using Mixin Classes
Mixin Classes in Odoo 17  How to Extend Models Using Mixin ClassesMixin Classes in Odoo 17  How to Extend Models Using Mixin Classes
Mixin Classes in Odoo 17 How to Extend Models Using Mixin ClassesCeline George
 
Python Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docxPython Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docxRamakrishna Reddy Bijjam
 
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in DelhiRussian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhikauryashika82
 
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...Nguyen Thanh Tu Collection
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxheathfieldcps1
 
Unit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptxUnit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptxVishalSingh1417
 
ICT Role in 21st Century Education & its Challenges.pptx
ICT Role in 21st Century Education & its Challenges.pptxICT Role in 21st Century Education & its Challenges.pptx
ICT Role in 21st Century Education & its Challenges.pptxAreebaZafar22
 
Magic bus Group work1and 2 (Team 3).pptx
Magic bus Group work1and 2 (Team 3).pptxMagic bus Group work1and 2 (Team 3).pptx
Magic bus Group work1and 2 (Team 3).pptxdhanalakshmis0310
 

Último (20)

General Principles of Intellectual Property: Concepts of Intellectual Proper...
General Principles of Intellectual Property: Concepts of Intellectual  Proper...General Principles of Intellectual Property: Concepts of Intellectual  Proper...
General Principles of Intellectual Property: Concepts of Intellectual Proper...
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
 
Activity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdfActivity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdf
 
Unit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptxUnit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptx
 
1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
 
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdfUGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
 
Food safety_Challenges food safety laboratories_.pdf
Food safety_Challenges food safety laboratories_.pdfFood safety_Challenges food safety laboratories_.pdf
Food safety_Challenges food safety laboratories_.pdf
 
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
 
psychiatric nursing HISTORY COLLECTION .docx
psychiatric  nursing HISTORY  COLLECTION  .docxpsychiatric  nursing HISTORY  COLLECTION  .docx
psychiatric nursing HISTORY COLLECTION .docx
 
Asian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptxAsian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptx
 
Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024
 
Kodo Millet PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...
Kodo Millet  PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...Kodo Millet  PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...
Kodo Millet PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...
 
Mixin Classes in Odoo 17 How to Extend Models Using Mixin Classes
Mixin Classes in Odoo 17  How to Extend Models Using Mixin ClassesMixin Classes in Odoo 17  How to Extend Models Using Mixin Classes
Mixin Classes in Odoo 17 How to Extend Models Using Mixin Classes
 
Python Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docxPython Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docx
 
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in DelhiRussian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
 
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
 
Unit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptxUnit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptx
 
ICT Role in 21st Century Education & its Challenges.pptx
ICT Role in 21st Century Education & its Challenges.pptxICT Role in 21st Century Education & its Challenges.pptx
ICT Role in 21st Century Education & its Challenges.pptx
 
Magic bus Group work1and 2 (Team 3).pptx
Magic bus Group work1and 2 (Team 3).pptxMagic bus Group work1and 2 (Team 3).pptx
Magic bus Group work1and 2 (Team 3).pptx
 

An investment costs $1,688 and pays $150 in perpetuity with the firs.pdf

  • 1. An investment costs $1,688 and pays $150 in perpetuity with the first cash flow coming at the end of each year. If the interest rate is 9% annually, what is the NPV? Solution NPV= Present value of calshflow for perpetuity- Current investment = ($150/0.09)-$1688 = $ 1,666.67-$1688 = ($1.33) 1,666.67