Hi Tutor,
If given a question in exams as follows: NPV $-2,000,000 and Investment outlay is $20,000,000. If given all the variables of blackscores pricing model, What would be Pa and Pe as per information given?
Blackscores
10y ago#1Please do not post the same question twice!!
Pe = 20M and Pa = 18M (if the NPV is – 2M then the PV of the returns must be 18M)
Thanks a lot JOHN.
10y ago#3You are welcome :-)