Question
1. Let's revisit our side hustle, THIS COMPANY, and our revenue ($M) shown in the graph. Inflation is 4% per year. The costs are $25.3M
1. Let's revisit our side hustle, THIS COMPANY, and our revenue ($M) shown in the graph. Inflation is 4% per year. The costs are $25.3M per year. What is the amount of money we can take out of the bank after 28 years if the ROR is 10%?
2. Now, if we're going to maintain our Purchasing Power (FW relative to current dollars) after 28 years for THIS COMPANY then we know we are going to compensate for inflation (4% per year) so what does our ROR need to be?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
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