Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A small business promises a profit of $8000 on an initial investment of $20 000 after 5 years. (a) Calculate the internal rate of return.

A small business promises a profit of $8000 on an initial investment of $20 000 after 5 years.

(a) Calculate the internal rate of return.

(b) Would you advise someone to invest in this business if the market rate is 6% compounded annually?

I don't get it to find the future value?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_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

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh

4th Canadian edition

978-1259269868, 978-1259103292

More Books

Students also viewed these Accounting questions

Question

Context, i.e. the context of the information presented and received

Answered: 1 week ago