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Finding the NPV of the Investment

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The cost of investment $30,000
The estimated annual profit $5,000 for the first year
The annual profit increases by 30% annually
The useful life of the investment is 5 years
The estimated cost of capital 10%

Find the net present value of the investment.

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Solution Summary

This is a tutorial on how to find the net present value of an investment.

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Given that,
Cost of Investment $30,000
Estimated annual ...

Solution provided by:
Jayant Kumar, MBA
Education
  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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