The chart below shows the initial investment and expected yearly payback for Project A and Project B Project AProject BInitial Investment $ 300,000 $ 450,000Expected Yearly PayBack $ 45,000 $ 90,000 For Project A, There has been a change in the expected yearly payback.Years 1 and 2 – you are expecting $45,000 each year.For the next three years, you are expecting $70,000 each year.What would be the average ROI for this alternative?

A Small Introduction about Investment A venture is basically a resource that is made fully intent…

Answered: The chart below shows the initial…

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

Related questions

Question

The chart below shows the initial investment and expected yearly payback for Project A and Project B

For Project A, There has been a change in the expected yearly payback.

Years 1 and 2 – you are expecting $45,000 each year.

For the next three years, you are expecting $70,000 each year.

What would be the average ROI for this alternative?

Expert Solution

Step 1

A Small Introduction about Investment

A venture is basically a resource that is made fully intent on permitting cash to develop.
One, assuming that you put resources into a saleable resource, you might procure pay via benefit.
Second, in the event that Investment is made in a return for creating the plan, you will procure a pay by means of aggregation of gains.
The venture is the work of assets fully intent on getting a return on it. Overall terms, venture implies the utilization of cash in the expectation of getting more cash.