A company is organizing a project to build housing units with an estimated investment of one million Million dollars to build (100 houses) The price of the house (20) thousand dollars Payable in unequal installments for (4 years), the first installment is 40% of the price of the house, the second installment is 30%, the third installment is 20%, the fourth installment is 10%, estimated The annual costs are (50) thousand dollars. Calculate the rate of return simple, payback period, and internal rate of return Knowing that the minimum discount rate (8%) and the highest (12%) and whether the project is accepted or rejected.
A company is organizing a project to build housing units with an estimated investment of one million Million dollars to build (100 houses) The price of the house (20) thousand dollars Payable in unequal installments for (4 years), the first installment is 40% of the price of the house, the second installment is 30%, the third installment is 20%, the fourth installment is 10%, estimated The annual costs are (50) thousand dollars. Calculate the rate of return simple, payback period, and internal rate of return Knowing that the minimum discount rate (8%) and the highest (12%) and whether the project is accepted or rejected.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Question
A company is organizing a project to build
housing units with an estimated investment of one million
Million dollars to build (100 houses) The price of the house (20) thousand dollars
Payable in unequal installments for (4 years), the first installment is 40% of the price of the house, the second installment is 30%, the third installment is 20%, the fourth installment is 10%, estimated
The annual costs are (50) thousand dollars. Calculate the rate of return
simple, payback period, and internal rate of return
Knowing that the minimum discount rate (8%) and the highest (12%) and whether the project is accepted or rejected.
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