Gurn Gjkadttir invests ISK 10 million (10 million ISK) in a company she founded. Gurn can get
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Question:
Gurn Gjkadttir invests ISK 10 million (10 million ISK) in a company she founded.
Gurn can get 8.3% interest on deposits, but she has to pay 10.5% interest if she takes out a loan.
Now Gurn is in a position where she owes a net amount. In order to invest ISK 10 million in a company, she therefore needs to take out an additional loan.
in the first year, the company's profit is ISK 1.9 million.
How much is the profit above the opportunity cost after one year of starting the business?
Have the answer in ISK (thousands of ISK), (e.g. if the answer is ISK 800, write 800 and not 800000)
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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