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7. A small business purchased now for P50,000 will lose P9,600 each year for the first 4 years. An additional investment of P30,000 in the business will required at the end of the fourth year. 15 years the business can sold for P70,000. What should be the profit each year from the fifth through the fifteeth year to obtain a rate of return of 25%? Ans P55.083 103

7. A small business purchased now for P50,000 will lose P9,600 each year for the first 4 years. An additional investment of P30,000 in the business will required at the end of the fourth year. 15 years the business can sold for P70,000. What should be the profit each year from the fifth through the fifteeth year to obtain a rate of return of 25%? Ans P55.083 103

Essentials Of Investments
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
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7. A small business purchased now for P50,000 will lose P9,600 each year for the first 4 years. An additional investment of P30,000 in the business will required at the end of the fourth year. After 15 years the business can sold for P70,000. What should be the profit each year from the fifth through the fifteeth year to obtain a rate of return of 25%? Ans. P55,083 103
Transcribed Image Text:7. A small business purchased now for P50,000 will lose P9,600 each year for the first 4 years. An additional investment of P30,000 in the business will required at the end of the fourth year. After 15 years the business can sold for P70,000. What should be the profit each year from the fifth through the fifteeth year to obtain a rate of return of 25%? Ans. P55,083 103
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