Kunkle Company wishes to earn 10% annually on its investments. If Kunkle makes an investment that equals or exceeds that rate, it considers it a success. Assume that Kunkle invests $4.6 million and gets $575,000 in return at the end of each year for X years. Assume that Kunkle can't invest for fractional parts of a year. What is the minimum value of X (number of years) for which Kunkle will consider the investment a success?

Kunkle Company wishes to earn 10% annually on its investments. If Kunkle makes an investment that equals or exceeds that rate, it considers it a success. Assume that Kunkle invests $4.6 million and gets $575,000 in return at the end of each year for X years. Assume that Kunkle can't invest for fractional parts of a year. What is the minimum value of X (number of years) for which Kunkle will consider the investment a success?

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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Please show detailed steps and correct.
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If you invest $15,000 in a long-term venture, you will receive $1,100 per year forever. The first earning is given two years after embarking on such investment Aside from the annual earnings, an additional $500 is earned every six years. Assuming your interest rate is 10% per year, what is the capitalized worth of your investment.
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