Homework #$4$

Economic consideration is being given for a proposal to build out a new business. All capital and operating costs are in thousands of dollars. Revenue is forecasted for six years and is also in thousands of dollars. Use a $15\%$ minimum discount rate to evaluate the given proposal.

Calculate the Net Present Value $($NPV$),$ Rate of Return $($ROR$),$ Growth Rate of Return $($GROR$),$ Present Value Ratio $($PVR$),$ and Benefit Cost Ratio $($B$/$C Ratio$).$ Please interpret all your findings. Finally, what time zero capital cost would give you exactly a $15\%$ rate of return?

Project Costs and Incomes are shown on the diagram in thousands of $

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