What is net present value of investment under consideration

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Reference no: EM133326702

Case: Assume an individual makes a lump sum investment at the beginning of year one of $19,002, the present value of which is $19,002. The investor's discount rate, for an alternative safe investment, is 11.75 percent after tax. The expected return on this investment (received at each year-end) is as follows.

Year 1: 1,890

Year 2: 18,338

Year 3: 16,807

Year 4: 11,140

Year 5: 4,540

What is the net present value of the investment under consideration?

Reference no: EM133326702

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