A project requires an initial outlay of $10 000 and promises net returns of $2000 per year

Question:

A project requires an initial outlay of $10 000 and promises net returns of $2000 per year over a 12-year period. If the project has a residual value of $4000 after 12 years, what is the rate of return?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

See More Books

Question Posted: Feb 26, 2016 04:19 AM

See More Questions

Blue Angel, Inc., a private firm in the holiday gift industry, is considering a new project. The company currently has a target debt-equity ratio of .40, but the industry target debt-equity ratio is...
Blue Angel, Inc., a private firm in the holiday gift industry, is considering a new project. The company currently has a target debtequity ratio of .40, but the industry target debtequity ratio is...
Elysian Fields, Inc., uses a maximum payback period of 6 years and currently must choose between two mutually exclusive projects. Project Hydrogen requires an initial outlay of $25,000; project...
The bookkeeper of Cinnamon Ltd. who is usually responsible for the bank reconciliation is on holiday. Before she left she asked you to do this task for her. On March 31, you are given the bank...
As the class of 2012 celebrates the end of college, for many the promise of a college degree has turned to disappointment as they find themselves struggling to find a job (Financial Times, June 1,...
The equity section of a partnership's balance sheet shows the total amount invested by the partners separate from the profit earned to date and retained in the business. Do you agree or disagree?...
Fill in the Blank. If $S(\overline{\omega) \text { has }}$ significant values only over a small range of frequencies, the process is called $\mathrm{a}(\mathrm{n})$ _____________ process.
Benton Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter??s production.1. Materials purchased on account $ 192,000, and factory...
Your grandparents put $1,000 into a saving account for you when you were born 25 years ago. This account has been earning interest at a compound rate of 8%. Fill out the table below. What is its...
Dave's Fresh Catfish is a northern Mississippi farm that operates in the perfectly competitive catfish farming industry. Dave's short-run total cost curve is STC(Q) = 400 + 2Q + 0.5Q2, where Q is the...
An investment requires an initial outlay of $45 000. Net returns are estimated to be $14 000 per year for eight years. Determine the rate of return.
Compute the rate of return for Question 5. In Question 5 A real estate development project requires annual outlays of $75 000 for 8 years. Net cash inflows beginning in Year 9 are expected to be $250...
The moment of inertia of the frictionless pulley system illustrated in Fig. 10-4 is I = 1.70 kg m 2 , where r 1 = 50 cm and r 2 = 20 cm. Find the angular acceleration of the pulley system and the...
Ross Lohr and Nathan Rothstein have built a thriving small business from the idea of giving old T-shirts new life by having them cut into squares and sewn into comfortable fleece-backed quilts. The...
Q: Business Owners are frequently unhappy with solutions presented in the System Demos. What action can an RTE take to help resolve this issue? 1 Include the Business Owners in the Product Owner Sync...
The two sequence components and the corresponding phase voltage of a 3-phase system are Vao =1
Nike initially spurned the sale of their products directly on Amazon, but it ended up testing out supplying Amazon with merchandise anyway. What was the main reason Nike made the decision to try...
choose an article within either the ABI/INFORM Collection database or the Business Source Complete database on the topic of the ethics of drug testing in the employment setting. After reading the...
Find the derivatives of the function. r = es S
Smthe Co. makes furniture. The following data are taken from its production plans for the year. Required: 1. Determine the hazardous waste disposal cost per unit for chairs and for tables if costs...
(A) Find an example of a function f(x, y)such that (B) How many such functions are there? Explain. af /ax = 3 and if lay = 2.
In Problems 65-70, find fxx(x, y),fxy(x,y),fyx(x,y), and fyy( x, y) for each function f. f(x,y) = x3y3 + x + y2
In Problems 65-70, find fxx(x, y),fxy(x,y),fyx(x,y), and fyy( x, y) for each function f. f(x, y) .2
Salmon ASA has just issued a callable seven-year, 8% coupon bond with coupon payable annually. The bond can be called at par in two years or anytime thereafter on a coupon payment date. It has a...
Lamda corporation wants to acquire another company within its industry for $100m and it expects the acquisition to contribute to its free cash flow by $5m the first year, and this contribution is...
Dewan INC. has several divisions, each with a manager responsible for the operations of the division. Each division of Dewan controls product design, sales, pricing, operating costs, and profits.....

A project requires an initial outlay of $10 000 and promises net returns of $2000 per year

Question:

Step by Step Answer:

Index 88789551 0930 Try i 18 d 2 135 135 673 270808 ...View the full answer

Contemporary Business Mathematics with Canadian Applications

Students also viewed these Finance questions