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Use the Table for the Question(s) Below

Question 92

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Use the table for the question(s) below.
Suppose the term structure of interest rates is shown below:
Use the table for the question(s) below. Suppose the term structure of interest rates is shown below: -What is the net present value (NPV) of an investment that costs $2,500 and pays $1,000 at the end of one, three, and five years?
-What is the net present value (NPV) of an investment that costs $2,500 and pays $1,000 at the end of one, three, and five years?

Correct Answer:

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NPV = -$2,500 + $1,0...

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