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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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