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.

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: The Basic Tools Of Finance
Section: Chapter Questions
Problem 3CQQ
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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