I have discovered an excellent investment opportunity: I buy a computer for 10,000TL, develop software on it for four years gaining 3,000TL, 4,000TL, 6,000TL, and 7,000TL respectively, sell it for 5,000TL to somebody else and buy a new computer with the same price at the end of the fourth year and restarting the cycle once again. This cycle goes forever, repeating, without a stop forever. What is the rate of return of this investment? Write your answer as a decimal number, with at least one digit after the decimal point. If your result is 10.5% just write 10.5 (DO NOT write it as 0.105 or DO NOT put a percentage sign)
I have discovered an excellent investment opportunity: I buy a computer for 10,000TL, develop software on it for four years gaining 3,000TL, 4,000TL, 6,000TL, and 7,000TL respectively, sell it for 5,000TL to somebody else and buy a new computer with the same price at the end of the fourth year and restarting the cycle once again. This cycle goes forever, repeating, without a stop forever. What is the rate of return of this investment? Write your answer as a decimal number, with at least one digit after the decimal point. If your result is 10.5% just write 10.5 (DO NOT write it as 0.105 or DO NOT put a percentage sign)
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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I have discovered an excellent investment opportunity: I buy a computer for 10,000TL, develop software on it for four years gaining 3,000TL, 4,000TL, 6,000TL, and 7,000TL respectively, sell it for 5,000TL to somebody else and buy a new computer with the same price at the end of the fourth year and restarting the cycle once again. This cycle goes forever, repeating, without a stop forever. What is the rate of
Write your answer as a decimal number, with at least one digit after the decimal point. If your result is 10.5% just write 10.5 (DO NOT write it as 0.105 or DO NOT put a percentage sign)
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