I have a friend who offered me an opportunity to invest in the Fyre Festival version...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
I have a friend who offered me an opportunity to invest in the Fyre Festival version 2.0¹. He said that it will be highly successful and became the new Coachella or Ultra. It first version will be in 2021 and they are planning to do it in an island in Miami, they said that they are in discussions with Brickell Key Island and Grove Isle. He said that I should invest $1MM now and I will receive a share of the profits in each of the 4 next Festivals. He mentioned that the estimation of my share of the profits that they calculated is the following one: 2020: $300,000 2021: $450,000 2022: $600,000 2023: $700,000 Use a discount rate of 12% and as benchmark for recover the initial investment 3 years, calculate and answer: 123 Calculate IRR, should I invest according to this tool? NPV, should I invest according to this tool? Payback period, should I invest according to this tool? I have a friend who offered me an opportunity to invest in the Fyre Festival version 2.0¹. He said that it will be highly successful and became the new Coachella or Ultra. It first version will be in 2021 and they are planning to do it in an island in Miami, they said that they are in discussions with Brickell Key Island and Grove Isle. He said that I should invest $1MM now and I will receive a share of the profits in each of the 4 next Festivals. He mentioned that the estimation of my share of the profits that they calculated is the following one: 2020: $300,000 2021: $450,000 2022: $600,000 2023: $700,000 Use a discount rate of 12% and as benchmark for recover the initial investment 3 years, calculate and answer: 123 Calculate IRR, should I invest according to this tool? NPV, should I invest according to this tool? Payback period, should I invest according to this tool? I have a friend who offered me an opportunity to invest in the Fyre Festival version 2.0¹. He said that it will be highly successful and became the new Coachella or Ultra. It first version will be in 2021 and they are planning to do it in an island in Miami, they said that they are in discussions with Brickell Key Island and Grove Isle. He said that I should invest $1MM now and I will receive a share of the profits in each of the 4 next Festivals. He mentioned that the estimation of my share of the profits that they calculated is the following one: 2020: $300,000 2021: $450,000 2022: $600,000 2023: $700,000 Use a discount rate of 12% and as benchmark for recover the initial investment 3 years, calculate and answer: 123 Calculate IRR, should I invest according to this tool? NPV, should I invest according to this tool? Payback period, should I invest according to this tool? I have a friend who offered me an opportunity to invest in the Fyre Festival version 2.0¹. He said that it will be highly successful and became the new Coachella or Ultra. It first version will be in 2021 and they are planning to do it in an island in Miami, they said that they are in discussions with Brickell Key Island and Grove Isle. He said that I should invest $1MM now and I will receive a share of the profits in each of the 4 next Festivals. He mentioned that the estimation of my share of the profits that they calculated is the following one: 2020: $300,000 2021: $450,000 2022: $600,000 2023: $700,000 Use a discount rate of 12% and as benchmark for recover the initial investment 3 years, calculate and answer: 123 Calculate IRR, should I invest according to this tool? NPV, should I invest according to this tool? Payback period, should I invest according to this tool?
Expert Answer:
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
Students also viewed these finance questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Discussion 7 questions make sure to answer all parts of questions detailed Read the Nasdaq article. Select one of the companies and state why you would be willing to invest in the IPO as part of your...
-
It was 5:30 Friday afternoon, January 22, 2016. Bill Hall, the chairman and CEO of National Brands Inc. was clearing up the last of the papers on his desk and was looking forward to a relaxing...
-
The summary of financial statements for division A is given below. Statement of Financial Position Statement of Profit or Loss RM'000 RM'000 Non-current assets 1,500 Revenue 4,000 Current assets 600...
-
What is a fidelity bond? Explain its purpose.
-
The U.S. Treasury offers to sell you a bond for $585.43. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $1,000. What interest rate would you...
-
List the steps of data wrangling and explain what is done in each step.
-
The Midwest Division of the Paibec Corporation manufactures subassemblies that are used in the corporations final products, Lynn Hardt of Midwests Profit Planning Department has been assigned the...
-
why it is important to have a good first impression and why you must stand out to the interviewer ? As a health care professional, what are the skills you can develop to build positive relationships...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
"); scanf("%d", &X); product = x; count = 0; while (count < 4) { } printf("%d ", product); product = x; count += 1;
-
Kaz is interested in understanding factors contributing to burnout among mental healthcare professionals who do not work in a private practice. They hypothesize that organizations or companies that...
-
As the marketing manager for the brand Olivia, you have been tasked to create and implement a digital marketing strategy to relaunch the brand. Devise two mind maps to ensure you have covered all the...
-
A stock pays a dividend that grows at rate g each year. The first dividend, which will be paid in one year, will be D, the next dividend, which will be paid in two years, will be (1+g)D, the third...
-
Consider the critical functions that families fulfill. What ones do you think are the most important? Why? Are these universal (i.e., the same across cultures)? Why or why not? How has the concept of...
-
Sage's Ice Cream Shop incurs the following costs associated with selling its specialty waffle cones in one month: Direct materials cost for ice cream and cones $1,996 Wages for the staff to scoop and...
-
Table of Interest Rates: Time Period Oyly Oy2y 0v3y lyly 2yly Consider the following bond: Exactly 3 years to maturity 9.7% coupon rate, paid annually $100 par value Bond is callable in exactly 1...
-
Gordon and Lisa estimate that they will need $1,875,000 in 40 years for their retirement years. If they can earn 8 percent annually on their funds, how much do they need to save annually?
-
The Quaid Brothers Corporation has preferred shares outstanding that pay an annual dividend of $12. Each has a price of $108. What is the required rate of return (yield) on the preferred stock?
-
Phu Lighters has the following assets: Current assets .....................................$1 ,750,000 Capital Assets ......... . .. .. .. .......... . .. . .3,000,000 Total...
-
Pabst Dental Supplies is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of occurrence are given. a. What is the expected value of unit sales for...
-
Using the demand and cost curves of an individual firm in oligopoly, demonstrate the effects of each of the following: a. The Clean Air Act b. The Nutrition and Labeling Act c. A ban on smoking...
-
Kodak has developed an important brand name through its advertising, innovation, and product quality and service. Suppose Kodak sets up a network of exclusive dealerships, and one of the dealers...
-
Explain why a market in which broadcast licenses can be purchased might be more efficient than having the FCC assign licenses on some basis designed by the FCC.
Study smarter with the SolutionInn App