Your friend is trying to convince you to invest in a farm. The initial investment requires $20,000
Fantastic news! We've Found the answer you've been seeking!
Question:
Your friend is trying to convince you to invest in a farm. The initial investment requires $20,000 on your part. He promises you a (net) revenue of $1,500 for the first year that will keep increasing by $200 every year for the following 5 years. You plan to keep the farm for a total of 6 years and your friend promised to buy your share at the end of year 6 for $15,000. Assuming MARR = 15%, use PW to determine the profitability of this investment.
Related Book For
Human Anatomy and Physiology
ISBN: 978-0321927040
10th edition
Authors: Elaine N. Marieb, Katja Hoehn
Posted Date: