You are an analyst employed to advise a firm's management as to the investment decision. The firm would like to invest $1,000,000 with the following projected cash flow stream:

Question

anonymous · Answer

|dw:1386982707612:dw|

anonymous · Answer

@atlas

anonymous · Answer

my answer was $930,779. is my answer correct?

atlas · Answer

Yes the present value of the investment is $930,779......while the company is investing a million dollars on it...........so it is a bad investment for the company.
As an analyst you should advise the company against this investment.