discount rate | MathCelebrity Forum

discount rate

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    A project requires a $5000 investment. It pays out $1000 at year 1, $2000 at year 2, $3000 at year 3

    A project requires a $5000 investment. It pays out $1000 at year 1, $2000 at year 2, $3000 at year 3. The discount rate is 5%. Should you invest? Using our NPV calculator, we get: NPV = 357.94. Because NPV > 0, we should invest
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