12. A company is planning to make a new investment worth 1200 USD, with projected income from year 2 until year 7 = 400 USD. Right after that, the gradient will lower as much as 15 USD, while the operating cost spent starting from year 1 will be 50 USD and the gradient will go up by 10 USD. Investment period is 12 years with a salvage of 500 USD, and also there will be a lump sum at year 6 as much as 300 USD. In year 7 there will be maintenance with a cost of 100 USD. Evaluate the investment plan with IRR method if MARR = 15%
12. A company is planning to make a new investment worth 1200 USD, with projected income from year 2 until year 7 = 400 USD. Right after that, the gradient will lower as much as 15 USD, while the operating cost spent starting from year 1 will be 50 USD and the gradient will go up by 10 USD. Investment period is 12 years with a salvage of 500 USD, and also there will be a lump sum at year 6 as much as 300 USD. In year 7 there will be maintenance with a cost of 100 USD. Evaluate the investment plan with IRR method if MARR = 15%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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12.
A company is planning to make a new investment worth 1200 USD, with projected income from year 2 until year 7 = 400 USD. Right after that, the gradient will lower as much as 15 USD, while the operating cost spent starting from year 1 will be 50 USD and the gradient will go up by 10 USD.
Investment period is 12 years with a salvage of 500 USD, and also there will be a lump sum at year 6 as much as 300 USD. In year 7 there will be maintenance with a cost of 100 USD.
Evaluate the investment plan with
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