What is the net present value of an investment that yields

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Reference no: EM13762911

A. What is the net present value of an investment that yields the following cash flows and could be sold for $10 millions at the end of 5 years? Utilize a 10% discount rate.

Year 1:0

Year 2: $1,000,000

Year 3: $1,000,000

Year 4: $1,000,000

Year 5: $1,000,000

B. What is the debt service payment on a loan with the following terms ?

Loan amount: $100,000

Interest rate: 10%

Term: 7 years

Reference no: EM13762911

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