Reggie has just taken over the management of a family business. He wants to make sure that
Fantastic news! We've Found the answer you've been seeking!
Question:
Reggie has just taken over the management of a family business. He wants to make sure that he makes financial sense to keep the business going. He could sell the building today for $530,000. Keeping the business going will require an $80,000 renovation now and generate an annual profit of $101,000 for the next 25 years (for simplicity, assume this is at the end of the year, starting a year from now). The discount/interest rate is 6%.
What are the GO and IRR of this decision?
Related Book For
Financial Management for Public Health and Not for Profit Organizations
ISBN: 978-0132805667
4th edition
Authors: Steven A. Finkler, Thad Calabrese
Posted Date: