A small business promises a profit of $8000 on an initial investment of $20 000 after five
Question:
A small business promises a profit of $8000 on an initial investment of $20 000 after five years.
(a) Calculate the internal rate of return.
(b) Would you advise someone to invest in this business if the market rate is 6% compounded annually?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 77% (9 reviews)
a 20000 1 1 100 100 ...View the full answer
Answered By
Muhammad Umair
I have done job as Embedded System Engineer for just four months but after it i have decided to open my own lab and to work on projects that i can launch my own product in market. I work on different softwares like Proteus, Mikroc to program Embedded Systems. My basic work is on Embedded Systems. I have skills in Autocad, Proteus, C++, C programming and i love to share these skills to other to enhance my knowledge too.
3.50+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Mathematics questions
-
A business tax form is either filed on time or late, is either from a small or a large business, and is either accurate or inaccurate. There is an 1195 probability that a form is from a small...
-
A small business has weekly costs of C = 100 + 30x + x2/10 where x is the number of units produced each week. The competitive market price for this business's product is $46 per unit. Find the...
-
A small business has weekly average costs, in dollars, of Where x is the number of units produced each week. The competitive market price for this business's product is $46 per unit. If production is...
-
A company has the following results for the three years to 31 March 2021: Assuming that the trading loss is carried forward and that maximum loss relief is taken as soon as possible, calculate the...
-
For the dissociation reaction of water separating into hydrogen (H2) and hydroxyl (OH) ions, plot the partial pressure of the hydrogen as a function of temperature for the temperature range of 1000 K...
-
On July 15, 2024, the Niche Car Company purchased 1,000 tires from the Treadwell Company for $50 each. The terms of the sale were 2/10, n/30. Niche uses a perpetual inventory system and the gross...
-
North Shore Architectural Stone, Inc., a company that installs limestone in residential and commercial buildings, agreed to supply and install limestone for a property owned by Joseph Vitacco. North...
-
Data for Barry Computer Co. and its industry averages follow. a. Calculate the indicated ratios for Barry. b. Construct the DuPont equation for both Barry and the industry. c. Outline Barry's...
-
Fickle Sickles collects 15,000 checks per 365-day year with average amount $170 and total delay 5 days. A lockbox system would reduce that delay to 3 days, and it would also reduce FISI's check...
-
The set of all real-valued functions f defined everywhere on the real line and such that f (1) = 0, with the operations defined in Example 4. In Exercise a set of objects is given, together with...
-
Determine the present value of $7000 in two years time if the discount rate is 8% compounded (a) quarterly (b) continuously
-
An investment company is considering one of two possible business ventures. Project 1 gives a return of $250 000 in four years time, whereas Project 2 gives a return of $350 000 in eight years time....
-
What will the code in Figure 5-30 assign to the strStatus variable when the intLevel variable contains the number 7? a. Bronze b. Gold c. Platinum d. Silver Select Case intLevel Case 1, 2 strStatus =...
-
8. a) Explain what the Fed will do when implementing an expansionary monetary policy using open market operations. b) Be as specific as possible about the ways in which this policy will conditions in...
-
Collins Food Group (CFG) owns both Sizzler and KFC in Australia. Due to Sizzlers continuing poor performance, CFG is deciding whether or not to close the Sizzler restaurants and re-invest into KFC to...
-
discuss the welfare effects of trade integration assuming that consumers value being able to consume a larger number of varieties.
-
Consider the following supply and demand curves. Supply: q = 800 + 400 p Demand: q = 2400 ? 400 p . Use these equations to respond to the following questions. (a) What is the market equilibrium price...
-
A bond for a company has a par value of $100 and matures on 2 December 2019. It has a price of $113.191 on 31 July 2014 and pays a coupon rate of 6.125%. What is the yield on this bond?
-
Use dimensional analysis to show how the speed v of a wave on a string of circular cross section depends on the tension in the string, F, the radius of the string, R, and its mass per volume, .
-
What is an insurable interest? Why is it important?
-
In Problems 47-50, convert each number to scientific notation and simplify. Express the answer in both scientific notation and in standard decimal form. 48. 50. (60,000) (0.000003)...
-
In Problems 47-50, convert each number to scientific notation and simplify. Express the answer in both scientific notation and in standard decimal form. 48. 50. (60,000) (0.000003)...
-
It is of considerable importance to know the least number of feet d in which a car can be stopped, including reaction time of the driver, at various speeds v (in miles per hour). Safety research has...
-
As shown below, a charged particle is moving through a region that has a uniform 1,400 N/C E-field (the red lines) and a uniform 8.8 T B-field. As a result of these two fields and the resulting...
-
Owners of a car rental company have determined that if they charge customers p dollars per day to rent a car, where 50 p 200, the number of cars n they rent per day can be modeled by the linear...
-
A 24.8-mW laser beam of diameter 1.86 mm is reflected at normal incidence by a perfectly reflecting mirror. Calculate the radiation pressure on the mirror. N/m
Study smarter with the SolutionInn App