A travelling salesman is attempting to convince me to invest in a gokart building project. This...
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A travelling salesman is attempting to convince me to invest in a gokart building project. This project should produce $10,000 positive cash flows for the next 5 years, after which I will receive nothing. The saleman wants requires a $30,000 investment for me to get the future cash flows. If I can normally get 8% return on my investments, AND the salesman is accurate with his cash flow predictions, how much better (positive) or worse (negative) off will I be if I accept his offer? A travelling salesman is attempting to convince me to invest in a gokart building project. This project should produce $10,000 positive cash flows for the next 5 years, after which I will receive nothing. The saleman wants requires a $30,000 investment for me to get the future cash flows. If I can normally get 8% return on my investments, AND the salesman is accurate with his cash flow predictions, how much better (positive) or worse (negative) off will I be if I accept his offer?
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Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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