A computer software start-up company is considering investing $2 million now and $2 million next year to launch. Then in the 3rd through the 10th years, they expect to earn a profit of $500,000 each year. What is the present value of the $4 million investment given a risk adjusted interest rate of 5%?

0 votes
     $500,000
      $615,323
      $424,847
      $520,085
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

0 votes
$520,085
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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