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Would you recommend that this is a good investment

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Reference no: EM133137374

Question - Your client has provided an investment which pays the following cash flows (with each of the payments being timed relative to 'today'): $15,000 in 12 months, $18,000 in 3 years, $21,000 in 5 years and a further $24,000 in 7 years. The interest rate over the period of the investment is a nominal rate of 9% p.a., compounded monthly. If your client can purchase the investment today for $50,000, would you recommend that this is a good investment? Why or why not?

Reference no: EM133137374

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