An investment project requires an initial payment of $500,000, and then will earn a constant return of $45,000 every year forever. Is this a profitable investment project? Oyes, it is profitable O you can't tell with this information Ono, it is not profitable
An investment project requires an initial payment of $500,000, and then will earn a constant return of $45,000 every year forever. Is this a profitable investment project? Oyes, it is profitable O you can't tell with this information Ono, it is not profitable
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
Related questions
Question
![An investment project requires an initial
payment of $500,000, and then will earn
a constant return of $45,000 every year
forever. Is this a profitable investment
project?
Oyes, it is profitable
O you can't tell with this information
Ono, it is not profitable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F80302337-e7c8-4632-9193-8d14e3aaed85%2Fb68e459e-31e3-4e65-8879-97dcca40ebab%2Frwwyq07_processed.jpeg&w=3840&q=75)
Transcribed Image Text:An investment project requires an initial
payment of $500,000, and then will earn
a constant return of $45,000 every year
forever. Is this a profitable investment
project?
Oyes, it is profitable
O you can't tell with this information
Ono, it is not profitable
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