A project requires a $5000 investment. It pays out $1000 at year 1, $2000 at year 2, $3000 at year 3

Discussion in 'Calculator Requests' started by math_celebrity, Dec 11, 2023.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    A project requires a $5000 investment. It pays out $1000 at year 1, $2000 at year 2, $3000 at year 3. The discount rate is 5%. Should you invest?

    Using our NPV calculator, we get:
    NPV = 357.94.

    Because NPV > 0, we should invest

     

Share This Page