An engineer has been offered an investment opportunity that will require an immediate cash outlay of $40,000 for a cash inflow of $3500 for each year of investment. However, she must state now the number of years she plans to retain the investment. Additionally, if the investment is retained for 6 years, a lump-sum amount of $36,000 will be returned to her; after 10 years, the lump sum return is anticipated to be $50,500, and after 15 years, it is estimated to be $52.000. Money is currently worth 9% per year. Determine the present worth values for 6 years, 10 years, and 15 years, and decide if the decision is sensitive to the retention period? The present worth when the investment is retained for 6 years is $___________ The present worth when the investment is retained for 10 years is $____________ The present worth when the Investment is retained for 15 years is $_____________
An engineer has been offered an investment opportunity that will require an immediate cash outlay of $40,000 for a
The present worth when the investment is retained for 6 years is $___________
The present worth when the investment is retained for 10 years is $____________
The present worth when the Investment is retained for 15 years is $_____________
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