What is the net present value of the investment

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Question: Assume an individual makes a lump sum investment at the beginning of year one of $26,272, the present value of which is $26,272. The investor's discount rate, for an alternative safe investment, is 14.24 percent after tax. The expected return on this investment (received at each year-end) is as follows.

Year 1: 17,099

Year 2: 14,287

Year 3: 18,847

Year 4: 17,699

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

Reference no: EM133335821

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