Laura's grandparents helped her purchase a small self-serve laundry business to make extra money during her 5
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Laura's grandparents helped her purchase a small self-serve laundry business to make extra money during her 5 college years. When she completed her engineering management degree, she sold the business and her grandparents told her to keep the money as a graduation present. For the net cash flows listed below, determine the following:
(a) The percentage of the investment recovered during the 5 years
(b) The actual rate of return over the 5-year period
(c) How long it took to pay back the $75,000 investment in year 0, plus a 7% per yearreturn
Transcribed Image Text:
Year NCF. S per year-75,000 -10,500 18,00-2000 28,000 105,000
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a Cash flows sum to 139100 which exceeds the 75000 first cost by 85 b Solve PW ...View the full answer
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