The cashflows C, (where the time is measured in years and the amounts are in 000)...

 

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The cashflows C, (where the time is measured in years and the amounts are in £000) for two business ventures are as follows: Venture 1: Co=-100, C₁=-40, C₂ = +50, C₂ = +120 Venture 2: C₁ = -45, C₂ = +25, C₁ = +25, Cg = +25 Calculate the accumulated profit at time 5 and the net present value for each of these ventures using a risk discount rate of 15% per annum. A speculator borrows £50,000 at an effective interest rate of 8% per annum to finance a project that is expected to generate £7,500 at the end of each year for the next 15 years. Find the discounted payback period for this investment. The cashflows C, (where the time is measured in years and the amounts are in £000) for two business ventures are as follows: Venture 1: Co=-100, C₁=-40, C₂ = +50, C₂ = +120 Venture 2: C₁ = -45, C₂ = +25, C₁ = +25, Cg = +25 Calculate the accumulated profit at time 5 and the net present value for each of these ventures using a risk discount rate of 15% per annum. A speculator borrows £50,000 at an effective interest rate of 8% per annum to finance a project that is expected to generate £7,500 at the end of each year for the next 15 years. Find the discounted payback period for this investment.

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To calculate the accumulated profit at time 5 and the net present value for each venture we can use ... View the full answer