The following series of revenues and expenses in $1000 units were recorded by a mobile phone business. At a return rate of 10% per year, (a) determine the net future worth in year 10. (b) Did the owners make their expected 10% return? How do you know? Year Revenues, $ Expenses, $ 0 0 −2500 1–4 700 −200 5–10 2000 −300
The following series of revenues and expenses in $1000 units were recorded by a mobile phone business. At a return rate of 10% per year, (a) determine the net future worth in year 10. (b) Did the owners make their expected 10% return? How do you know? Year Revenues, $ Expenses, $ 0 0 −2500 1–4 700 −200 5–10 2000 −300
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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The following series of revenues and expenses in
$1000 units were recorded by a mobile phone business.
At a return rate of 10% per year, (a) determine
the net future worth in year 10. (b) Did the owners
make their expected 10% return? How do you know?
Year Revenues, $ Expenses, $
0 0 −2500
1–4 700 −200
5–10 2000 −300
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