Danny has P13760 in cash and he would like to invest it in business. His estimates of the year by year receipts and disbursements for all purposes are shown in the table • Year - 0 • 1 2 . 3 4 Disburstments - P13760 + P1000 + P1200 + P1500 + P1800 0 P5000 P6200 P7500 P8800 • He estimates that his equipment will have a salvage value of P2000 at the end of useful life. Find the rate of return of the prospective investments.
Danny has P13760 in cash and he would like to invest it in business. His estimates of the year by year receipts and disbursements for all purposes are shown in the table • Year - 0 • 1 2 . 3 4 Disburstments - P13760 + P1000 + P1200 + P1500 + P1800 0 P5000 P6200 P7500 P8800 • He estimates that his equipment will have a salvage value of P2000 at the end of useful life. Find the rate of return of the prospective investments.
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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ALSO SHOW CASH FLOW
Transcribed Image Text:Danny has P13760 in cash and he would like to invest it in business. His
estimates of the year by year receipts and disbursements for all purposes are
shown in the table
• Year
- 0
1
. 2
. 3
6
4
Disburstments
- P13760
+ P1000
+ P1200
+ P1500
+ P1800
0
P5000
P6200
P7500
P8800
He estimates that his equipment will have a salvage value of P2000 at the
end of useful life. Find the rate of return of the prospective investments.
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