Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 12, 2024

1. Initial Investment: $50,000 2. Year 1 Cash Inflow: $40,000; Year 1 Cash Outflow: $10,000 3. Annual Growth of Cash Inflow: 50% 4. Annual Growth

1. Initial Investment: $50,000

2. Year 1 Cash Inflow: $40,000; Year 1 Cash Outflow: $10,000

3. Annual Growth of Cash Inflow: 50%

4. Annual Growth of Cash Outflow: 0%

5. Value of initial investment in year 3, $10,000

6. Cost of Capital: 15%

7. You would like to receive your initial investment back in 2 years or less.

How long in years will it take to recoup your investment?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analysis Of Financial Data

Authors: Gary Koop

1st Edition

0470013214, 978-0470013212

More Books

Students also viewed these Finance questions

Question

★★★★★

Refer to the leucine data given in Exercise 12.3.1. (a) Construct a 95% confidence interval for B\. (b) Interpret the confidence interval from part (a) in the context of this setting.

Answered: 1 week ago

Question

★★★★★

11.26 The study described in the paper Marketing Actions Can Modulate Neural Representation of Experienced Pleasantness (Proceedings of the National Academy of Science [2008]: 10501054) investigated...

Answered: 1 week ago

Question

★★★★★

The income statements of Evans Company and Falcon Company for the current year are shown below: The following amounts were taken from the statement of changes in equity for the two companies: Evans...

Answered: 1 week ago

Question

★★★★★

1. Initial Investment: $50,000 2. Year 1 Cash Inflow: $40,000; Year 1 Cash Outflow: $10,000 3. Annual Growth of Cash Inflow: 50% 4. Annual Growth of Cash Outflow: 0% 5. Value of initial investment in...

Answered: 1 week ago

Question

★★★★★

Assume you manage a grocery store. From the following business activities, evaluate and describe how the transactions might be accounted and recorded. Include examples showing journal entries and...

Answered: 1 week ago

Question

★★★★★

Question: What happens when the final keyword is applied to a method in Java? A) The method cannot be overridden by subclasses. B) The method can only be called once during the program's execution....

Answered: 1 week ago

Question

★★★★★

Question: What is the effect of declaring a constructor as private in Java? A) The class cannot have any instances. B) The class can only be instantiated from within the class itself. C) The class is...

Answered: 1 week ago

Question

★★★★★

Question: What happens when the synchronized keyword is applied to a method in Java? A) The method can only be executed by one thread at a time. B) The method becomes immutable and its logic cannot...

Answered: 1 week ago

Question

★★★★★

1. We include here a pictorial representation of this chapter in the form of a mind map ( Figure 1.1 ). Use the key words we have included to refresh your memory of what we have covered in this...

Answered: 1 week ago

Question

★★★★★

1. In what ways is information technology being used by HR professionals?

Answered: 1 week ago

Question

★★★★★

2. In what ways is information technology being used by line managers?

Answered: 1 week ago

Previous Question Next Question