Question
a. I evaluate starting a business. I believe that I will make $14,500 in year 1, $10,000 in year 2, $6,500 in year 3, and
a. I evaluate starting a business. I believe that I will make $14,500 in year 1, $10,000 in year 2, $6,500 in year 3, and $4,000 in year 4. I believe for a risky project like this I should get at least a 13.5% return. What is the most I should be willing to invest (PV)?
(b) If I had to only invest $18500, what rate of return would I receive?
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Financial Risk Manager Handbook
Authors: Philippe Jorion
6th Edition
0470904011, 978-0470904015
