.12 Effie has been given a chance to invest in her sisterâ??s frozen fruit juicecompany which needs

.12 Effie has been given a chance to invest in her sister’s frozen fruit juicecompany which needs some ‘seed’ capital so that production cancommence. Her sister, Libby, estimates that an investment of $50,000 to buy50,000 shares is needed. Libby estimates that each share will be worth$5.00 in 5 years.(b) What is the present value of the expected sum in 5 years if Effie sellsher shares?If the share price reaches $5 per share then the PV is the original investment of $50,000.I dont understand how the PV is 50,000?

 

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