TVM-2 - good idea 10 4,086 good idea 11-2,910 bad idea...

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Serenity Witten AGEC 424 TVM-2 40. The present value of $95,600 exceeds the value of the investment of $38,250 that has been made today. a. k NPV 9% $11,405
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Unformatted text preview: good idea 10% 4,086 good idea 11%-2,910 bad idea 12%-9,601 bad idea b. Indifference implies that NPV=0 which occurs when k= 10.58%...
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