Fgh company has two investment opportunities. both investments cost $6,600 and will provide the same total future cash inflows. the cash receipt schedule for each investment is given below: investment i investment ii period 1 $ 1,800 $ 1,800 period 2 1,800 2,960 period 3 2,800 4,120 period 4 5,280 2,800 total $ 11,680 $ 11,680 what is the net present value of investment ii assuming an 12% minimum rate of return?

$2,078.82

Explanation:

The net present value is the cost of an investment substracted from the value of the after tax cash flows.

The NPV can be calculated using a financial calculator.

Cash flow for year 0 = -$6,600

Cash flow for year 1=$1,800

Cash flow for year 2=$2,960

Cash flow for year 3=$4,120

Cash flow for year 4=$2800

I = 12%

NPV =$2,078.82

I hope my answer helps you

a. money supply  

have a good day

answer; false pretense;