问答题
An entrepreneur is faced with the following investment opportunity: For an investment of ＄100 today and a further investment of ＄150 next year, he can earn a return of ＄300 two years from now. Should he undertake this investment if the interest rate is 5 percent? If the interest rate is 15 percent? Explain.
【正确答案】
【答案解析】At5 percent, the NPV=-＄100-＄150/1.05+＄300/(1.05)2=＄29.25. The
investment is worthwhile. At 15 percent, the
NPV=-＄100-＄150/1.15+＄300/(1.15)2=-＄3.59, so the investment is not
worthwhile. Since file benefits are only received in the future,
a higher discount lowers the present value of these benefits. Hence, the
investment becomes less profitable.