Nu Things, Inc., is considering an investment in a business venture with the following anticipated cash flow results: EOY Cash Flow 0 -$95,000 1 $28,000 2 $27,000 3 $26,000 4 $25,000 5 $24,000 6 $23,000 7 $22,000 8 $21,000 9 $20,000 10 $19,000 11 $18,000 12 $17,000 13 $16,000 14 $15,000 15 $14,000 16 $13,000 17 $12,000 18 $11,000 19 $10,000 20 $9,000 Assume MARR is 20% per year. Based on an external rate of return analysis: Part a Determine the investment's worth: % Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.
Nu Things, Inc., is considering an investment in a business venture with the following anticipated cash flow results: EOY Cash Flow 0 -$95,000 1 $28,000 2 $27,000 3 $26,000 4 $25,000 5 $24,000 6 $23,000 7 $22,000 8 $21,000 9 $20,000 10 $19,000 11 $18,000 12 $17,000 13 $16,000 14 $15,000 15 $14,000 16 $13,000 17 $12,000 18 $11,000 19 $10,000 20 $9,000 Assume MARR is 20% per year. Based on an external rate of return analysis: Part a Determine the investment's worth: % Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Nu Things, Inc., is considering an investment in a business venture with the following anticipated cash flow results:
Assume MARR is 20% per year. Based on an externalrate of return analysis:
|
EOY |
Cash Flow |
|---|---|
|
0
|
-$95,000 |
|
1
|
$28,000 |
|
2
|
$27,000 |
|
3
|
$26,000 |
|
4
|
$25,000 |
|
5
|
$24,000 |
|
6
|
$23,000 |
|
7
|
$22,000 |
|
8
|
$21,000 |
|
9
|
$20,000 |
|
10
|
$19,000 |
|
11
|
$18,000 |
|
12
|
$17,000 |
|
13
|
$16,000 |
|
14
|
$15,000 |
|
15
|
$14,000 |
|
16
|
$13,000 |
|
17
|
$12,000 |
|
18
|
$11,000 |
|
19
|
$10,000 |
|
20
|
$9,000 |
Assume MARR is 20% per year. Based on an external
Part a
Determine the investment's worth: %
Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.
Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.
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