A company invested $100,000 in a new technology and five years later had $180,000 returned from...
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A company invested $100,000 in a new technology and five years later had $180,000 returned from their investment. Pleased with the results, they decided to expand their business and buy exactly the same technology, which now costs $110,000. Determine the following: a) The average annual inflation rate over the five-year period b) The annual rate of return of the company's investment c) The real (inflation-free) annual rate of return 160/1000,022 A company invested $100,000 in a new technology and five years later had $180,000 returned from their investment. Pleased with the results, they decided to expand their business and buy exactly the same technology, which now costs $110,000. Determine the following: a) The average annual inflation rate over the five-year period b) The annual rate of return of the company's investment c) The real (inflation-free) annual rate of return 160/1000,022
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a The average annual inflation rate over the fiveyear period To calculate the average annual inflati... View the full answer
Related Book For
Strategic Management An Integrated Approach
ISBN: 978-1111825843
10th edition
Authors: Charles W. L. Hill, Gareth R. Jones
Posted Date:
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