A business invests $5000 and initially plans to achieve annual revenue of $1100/yr with $200/yr expenses (starting at the end of ar 1) for ten years. No market value if used for ten years. 1. What is the IRR if it is used for ten years with no market value? Is it a good investment if used this way? Why?
A business invests $5000 and initially plans to achieve annual revenue of $1100/yr with $200/yr expenses (starting at the end of ar 1) for ten years. No market value if used for ten years. 1. What is the IRR if it is used for ten years with no market value? Is it a good investment if used this way? Why?
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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A business invests $5000 and initially plans to achieve annual revenue of $1100/yr with $200/yr
expenses (starting at the end of ar 1) for ten years. No market value if used for ten years.
1. What is the
investment if used this way? Why?
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