3. (20 points) You are considering an investment that costs $2,000. It is expected to have a useful life of four years. You are very confident about the revenues during the first two years but you are unsure about the revenue in year 3 and 4. If you hope to make at least 10% rate of return on your investment, what should be the minimum revenue in year 3 and 4? Year Cash Flow -$2,000 $1,000 $1,200 $X 4 $X 123
3. (20 points) You are considering an investment that costs $2,000. It is expected to have a useful life of four years. You are very confident about the revenues during the first two years but you are unsure about the revenue in year 3 and 4. If you hope to make at least 10% rate of return on your investment, what should be the minimum revenue in year 3 and 4? Year Cash Flow -$2,000 $1,000 $1,200 $X 4 $X 123
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![3. (20 points) You are considering an investment that costs $2,000. It is expected to have a useful
life of four years. You are very confident about the revenues during the first two years but you
are unsure about the revenue in year 3 and 4. If you hope to make at least 10% rate of return
on your investment, what should be the minimum revenue in year 3 and 4?
Year Cash Flow
-$2,000
$1,000
$1,200
$X
1
3.
4
$X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4223ebe3-c813-4661-9055-2d58f0b6cc2e%2F8e157db3-1dca-4775-ae43-1a48458c6710%2F38kblec_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. (20 points) You are considering an investment that costs $2,000. It is expected to have a useful
life of four years. You are very confident about the revenues during the first two years but you
are unsure about the revenue in year 3 and 4. If you hope to make at least 10% rate of return
on your investment, what should be the minimum revenue in year 3 and 4?
Year Cash Flow
-$2,000
$1,000
$1,200
$X
1
3.
4
$X
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