What is the npv of the opportunity cost

Reference no: EM132025115

Question: You are considering a project with an initial investment of 1,000 Euros, and future expected cash flows in years 1,2 and 3 of 10,000 Euros each. Assume 50% of the project's expected cash flows are retained in the host country until the project is 3 years old. The opportunity cost of these funds is i€ = 5%, but these blocked funds earn no interest. What is the NPV (in Euros) of the opportunity cost from these blocked funds?

Reference no: EM132025115

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