Allan Decides to Invest in a New Company Which Would

question 96

Multiple Choice

Allan decides to invest in a new company which would allow him to receive $250,000 at the end of each year for the next 5 years.He purchases 100,000 shares at the price of $6.50.What is the NPV of a single share,if the interest rate is 15% per year?

• A)$8.38
• B)$1.88
• C)$6.00
• D)$838,038.77
• E)$188,038.77

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