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A friend offers to give you 10 payments of $1000 at annual time periods zero through 10 except year three if you give him $9000
A friend offers to give you 10 payments of $1000 at annual time periods zero through 10 except year three if you give him $9000 at year 3, as shown. Evaluate the income, investment, income opportunity with the ROR of 20% using the Escrow Modified ROR approach. Confirm your answer with NVP analysis. all steps and formula included.
0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
I = 1000 | I=1000 | I=1000 | C=9000 | I=1000 | I=1000 | I=1000 | I=1000 | I=1000 | I=1000 | I=1000 |
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