In an investment case, 1 million investment is required at the end of the 4th and 5th year, a profit of 2 million at the end of the 9th year, and a profit of 3 million at the end of the 10th year, and the annual interest i = 5% of bank loans. [a] Draw a Cash Flow diagram. [b] Taking the end of the tenth year as the closing date, find P, F, and A respectively. [c] Is it worth investing in this case?
In an investment case, 1 million investment is required at the end of the 4th and 5th year, a profit of 2 million at the end of the 9th year, and a profit of 3 million at the end of the 10th year, and the annual interest i = 5% of bank loans. [a] Draw a Cash Flow diagram. [b] Taking the end of the tenth year as the closing date, find P, F, and A respectively. [c] Is it worth investing in this case?
Chapter1: Making Economics Decisions
Section: Chapter Questions
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please answer all parts of the questions within 30 minutes. make sure all the parts of the question are answered else i will give negative ratings.
![In an investment case, 1 million investment is required at the end of the 4th and
5th year, a profit of 2 million at the end of the 9th year, and a profit of 3 million at
the end of the 10th year, and the annual interest i = 5% of bank loans.
[a] Draw a Cash Flow diagram.
[b] Taking the end of the tenth year as the closing date, find P, F, and A respectively.
[c] Is it worth investing in this case?
SP: For question b, list the formulas in a format similar to (? /?, %, n).
[d] The interest of bank loans changes drastically when i =?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F830106e6-da64-480a-b567-a594b2f1ea41%2F84bf8b12-7cd4-4a85-93cf-8b6b92270546%2Fojzlonl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In an investment case, 1 million investment is required at the end of the 4th and
5th year, a profit of 2 million at the end of the 9th year, and a profit of 3 million at
the end of the 10th year, and the annual interest i = 5% of bank loans.
[a] Draw a Cash Flow diagram.
[b] Taking the end of the tenth year as the closing date, find P, F, and A respectively.
[c] Is it worth investing in this case?
SP: For question b, list the formulas in a format similar to (? /?, %, n).
[d] The interest of bank loans changes drastically when i =?
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