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An investment has a cost of $10000. In investments gives nothing for the first 3 years. Years 4 to 6 the investment will pay $3000
An investment has a cost of $10000. In investments gives nothing for the first 3 years. Years 4 to 6 the investment will pay $3000 each year. Years 7 to 11 the investment will pay $4500 each year. You have an interest rate of 15% on this investment. What is the value of the investment and will you accept it? What is the rate of return on the investment? Will you purchase the investment or not any why?
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