Q 2. Nu Things, Inc., is considering investing in a business venture with the following anticipated cash flow results:EOYCash Flow0-$70,0001$20,0002$19,0003$18,0004$17,0005$16,0006$15,0007$14,0008$13,0009$12,00010$11,00011$10,00012$9,00013$8,00014$7,00015$6,00016$5,00017$4,00018$3,00019$2,00020$1,000Assume MARR is 20 percent per year. Based on an internal rate of return analysis:Determine the investment’s worth: enter percentages rounded to 1 decimal place %

given that, the initial cost is -$70000 revenue in 1st year is $20,000 which is decreasing by $1000…

Answered: Nu Things, Inc., is considering…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q 2.

Nu Things, Inc., is considering investing in a business venture with the following anticipated cash flow results:

EOY	Cash Flow
0	-$70,000
1	$20,000
2	$19,000
3	$18,000
4	$17,000
5	$16,000
6	$15,000
7	$14,000
8	$13,000
9	$12,000
10	$11,000
11	$10,000
12	$9,000
13	$8,000
14	$7,000
15	$6,000
16	$5,000
17	$4,000
18	$3,000
19	$2,000
20	$1,000

Assume MARR is 20 percent per year. Based on an internal rate of return analysis:

Determine the investment’s worth: enter percentages rounded to 1 decimal place %

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