An investment costs $7,000 and generates a stream of revenue as follows for five years. If...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
An investment costs $7,000 and generates a stream of revenue as follows for five years. If the rate of return is 8%, is it profitable investment? Calculate the rate of return for this investment End of Year CF Year 1: $1,500 Year 2: $2,500 Year 3: 0 Year 4: 3,500 Year 5: 1,000 An investment costs $7,000 and generates a stream of revenue as follows for five years. If the rate of return is 8%, is it profitable investment? Calculate the rate of return for this investment End of Year CF Year 1: $1,500 Year 2: $2,500 Year 3: 0 Year 4: 3,500 Year 5: 1,000
Expert Answer:
Answer rating: 100% (QA)
To determine if the investment is profitable we need to calculate the net present valu... View the full answer
Related Book For
Financial Management for Decision Makers
ISBN: 978-0138011604
2nd Canadian edition
Authors: Peter Atrill, Paul Hurley
Posted Date:
Students also viewed these finance questions
-
For each matrix in Problems a to b compute its eigenvalues, eigenvectors and the dimension of each eigenspace. a. b. 2 00 12 -1 0 12-1 4 -4 5
-
Express the function in the form fo g. (Use non-identity functions for f and g.) x 9+x F(x) {f(x), g(x)} = Need Help? Read It Watch It Talk to a Tutor
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
n Write a program that finds how many zeros in the list and puts the result in cntr variable (Copy and paste a program that is not related to the requirements will get Ox0000) .data list1 .word...
-
Deadwood Properties bought three lots in a subdivision for a lump-sum price. An independent appraiser valued the lots as follows: Lot Appraised Value 1 $ 70,500 2 235,000 3 164,500 Deadwood paid...
-
Refer to Exercise 16. Does the fact that r = 0.45 suggest that making an infant cry will increase his or her IQ later in life? Explain your reasoning. Exercise 16. Infants who cry easily may be more...
-
\(\lambda_{1}\) and \(\lambda_{2}\) with same sign \(\left(\lambda_{1}, \lambda_{2} ight.\) : real and distinct) a. Unstable node b. Saddle point c. Node d. Focus or spiral point e. Stable node
-
Error Analysis and Correcting Entry You have been engaged to review the financial statements of Longfellow Corporation. In the course of your examination you conclude that the bookkeeper hired during...
-
Describe the 360 degree evaluation method. Mention its advantages and disadvantages. Include the email address where you found the information.?
-
A steel pinion having a diameter of about 254 mm meshes with a steel gear which turns at 1/3 the angular speed of the pinion. The torque of 3,222 kgcm (18,000 lb-in). The angle of cut of the teeth is...
-
5. We wish to identify an unknown monoprotic acid. A 0.026 M solution of magnesium hydroxide is used in a titration. To begin, 0.018 grams of the unknown acid are dissolved in 200 mL of water prior...
-
(a) Mutale and Kafula are in business trading as partners. The following g is the draft statement of profit or loss for the partnership for the year ended 31 December 2020: (b) Gross profit Expenses...
-
Time value of money Finding FV (5) ke (1) KAN yous po Y $1,000 55 Formas 0 Creating a table with FVs at various interest rates and time periods using Data Table Your they LOO 10 Chaling graph with...
-
Phill Steganography Project Attached Files: Image Steganography Setup.zip (342.015 KB) Since this is not really covered in TestOut, I have provided the above tutorial on using Image Steganography. In...
-
A P/inS = 80% # of units sold from P to S in year 1 # of units sold from P to S in year 2 # of units sold from S to P in year 1 # of units sold from S to P in year 2 # of units sold from S to...
-
Select] Within the Boston Consulting Group (BCG) Matrix. are offerings that are capturing a relatively high percentage of the market in a low-growth (i.e.. not growing quickly) market. We only want...
-
TreecaffeLeone IV is a local breakfast restaurant chain located in Rome. (TcL). The TcL branch of the restaurant operates 7 days a week and serves breakfast 24 hours a day. On average, in one hour 12...
-
Citing a scientific article, explain in your own words, how DNA fingerprinting has been used in forensic science to solve crimes and why it may not always be accurate or effective.
-
You have gathered the following information on companies in your industry. Required: (a) Calculate the cost of common shares for each of the companies. (b) Which company has the lowest cost of common...
-
Use the data in (and your solutions to) Problems and Cases 8.2 and 8.3 to determine for each company whether it should factor its accounts receivables. In problem
-
Choice Designs Ltd. operates a small group of wholesale/retail carpet stores in Alberta and British Columbia. The balance sheet is below: As a result of falling profits, the directors of the business...
-
Reverse-current readings (in nanoamperes) are made at the location of a transistor on an integrated circuit. A sample of size 10 is taken every half hour. Since some of the units may prove to be...
-
In order to establish control charts for an extraction job, 30 samples of five measurements of the extracted ores are taken, and the results are \(\overline{\bar{x}}=25.96\) tons and \(\bar{s}=1.5\)...
-
If the sample standard deviations instead of the sample ranges are used to estimate \(\sigma\), the control limits for the resulting \(\bar{x}\) chart are given by \(\overline{\bar{x}} \pm A_{1}...
Study smarter with the SolutionInn App