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a. A company has been invited to invest $4 million in a partnership and receive a guaranteed total amount o of $10 million after 6
a. A company has been invited to invest $4 million in a partnership and receive a guaranteed total amount o of $10 million after 6 years. By corporate policy the MARR is always established at 2% above the cost of capital. The inflation rate during the 6 year is expected to average 4% per year. If the real interest rate paid on capital is 12% per year, is this investment economically justified? a. A company has been invited to invest $4 million in a partnership and receive a guaranteed total amount o of $10 million after 6 years. By corporate policy the MARR is always established at 2% above the cost of capital. The inflation rate during the 6 year is expected to average 4% per year. If the real interest rate paid on capital is 12% per year, is this investment economically justified
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