Pearson International Publishing Company is trying to decide whether to revise its popular textbook, Fundamental of Corporate Finance. The company has estimated that the revision will cost RM65,000. Cash flows for the first year is RM18,000 and it will increase by 4 percent per year. The book will be revised back after five years. The initial costs are paid now, and revenues are received at the end of each year. If the company requires a 10 percent return for the investment, should it undertake the revision.
Pearson International Publishing Company is trying to decide whether to revise its popular textbook, Fundamental of Corporate Finance. The company has estimated that the revision will cost RM65,000. Cash flows for the first year is RM18,000 and it will increase by 4 percent per year. The book will be revised back after five years. The initial costs are paid now, and revenues are received at the end of each year. If the company requires a 10 percent return for the investment, should it undertake the revision.
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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Pearson International Publishing Company is trying to decide whether to
revise its popular textbook, Fundamental of
has estimated that the revision will cost RM65,000. Cash flows for the first
year is RM18,000 and it will increase by 4 percent per year. The book will be
revised back after five years. The initial costs are paid now, and revenues are
received at the end of each year. If the company requires a 10 percent
for the investment
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