Your brother needs a $$5,000$ loan to go to college. Because of his poverty, he will pay nothing for the next four years. Five years from today he will begin paying you $$2,500$ a year for the next $4$ years. The first payment occurs $5$ years from today, and the total of the four payments will be $$10,000.$

Create a cash flow diagram, assuming no inflation.

 

 If your MARR is $8\%,$ then is this an acceptable investment? Show why? 

 

Answer rating: 100% (QA)

Heres a cash flow diagram for your brothers loan Year 1 0 Year 2 0 Year ... View the full answer