Nu Things, Inc. is considering an investment in a business venture with the following anticipated cash flow resul EOY Cash Flow -$90,000 $21,000 $20,000 3. $19,000 $18,000
Nu Things, Inc. is considering an investment in a business venture with the following anticipated cash flow resul EOY Cash Flow -$90,000 $21,000 $20,000 3. $19,000 $18,000
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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Transcribed Image Text:Nu Things, Inc., is considering an investment in a business venture with the following anticipated cash flow results:
EOY Cash Flow
-$90,000
$21,000
2.
$20,000
3
$19,000
4.
$18,000
$17,000
6.
$16,000
$15,000
8.
$14,000
$13,000
10
$12,000
11
$11.000
12
$10,000
13
$9,000
14
$8.000
15
$7,000
Question 5 of 5
16
$6.000
17
$5,000
18
$4,000
19
$3,000
20
$2,000

Transcribed Image Text:Assume MARR is 20% per year. Based on an external rate of return analysis:
Click here to access the TVM Factor Table Calculator
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 10.2
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