An investor is considering two investment projects. Project A requires an initial payment of £11,000. In return, the investor will receive a payment of £15,200 after one year. Project B requires an initial payment of £10,000. In return, the investor will receive a payment of £1,120 at the end of every month for one year. Calculate the cross-over rate of the projects Enter a percentage correct to 1 decimal place. What is the payback period of each project? Project A: months Project B: months
An investor is considering two investment projects. Project A requires an initial payment of £11,000. In return, the investor will receive a payment of £15,200 after one year. Project B requires an initial payment of £10,000. In return, the investor will receive a payment of £1,120 at the end of every month for one year. Calculate the cross-over rate of the projects Enter a percentage correct to 1 decimal place. What is the payback period of each project? Project A: months Project B: months
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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Question
An investor is considering two investment projects.
Project A requires an initial payment of £11,000. In return, the investor will receive a payment of £15,200 after one year.
Project B requires an initial payment of £10,000. In return, the investor will receive a payment of £1,120 at the end of every month for one year.
Calculate the cross-over rate of the projects
Enter a percentage correct to 1 decimal place.
What is the payback period of each project?
Project A: months
Project B: months
Transcribed Image Text:An investor is considering two investment projects.
Project A requires an initial payment of £11,000. In return, the investor will receive a payment of £15,200 after one year.
Project B requires an initial payment of £10,000. In return, the investor will receive a payment of £1,120 at the end of every month for one year.
Calculate the cross-over rate of the projects
数字
%
Enter a percentage correct to 1 decimal place.
What is the payback period of each project?
Project A: 数字
months
Project B:数字
months
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