A company is planning an investment, in today’s money value, of 1,600,000 Estimated technical and economic life is four years It is calculated with annual payments of 2,300,000 and current payments of 1,200,000 per year, also in today’s money value The payments are judged to be able to follow the general rate of price increase, while the payments are estimated to increase by another percentage point CPI1 is forecast at 37 and the company’s nominal required return is 12 Ignore tax, what does the investment provide for NPV (Note Rounded answer options) 1 Consumer Price Index (CPI) The index measures the average price development for the entire private domestic consumption, the prices the consumer actually pays The CPI is the usual measure for compensation and inflation calculations in Sweden
