What is the present value of an investment that will pay $1,000 in 5 years, if the discount rate is 10% per annum?
ROI = ($370 - $300) / $300 = $70 / $300 = 0.2333 or 23.33% Ushtrime Te Zgjidhura Investime
Expected Return = (0.40 x 0.12) + (0.60 x 0.15) = 0.048 + 0.09 = 0.138 or 13.8% What is the present value of an investment
What is the expected return of the portfolio? 000 in 5 years
PV = $1,000 / (1 + 0.10)^5 = $1,000 / 1.61051 = $620.92
Using the present value formula:
An investment generates the following cash flows:
