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
Using our NPV calculator, we get:
NPV = 357.94.
Because NPV > 0, we should invest