Question
Assume that you are in the year 2012 (CF0). Your initial capital investment (CF0), which is the same for all three companies, CF1 would be
Assume that you are in the year 2012 (CF0). Your initial capital investment (CF0), which is the same for all three companies, CF1 would be the amount in row 1 of the table, on the next page, respective for each company. The numbers below explains how to determine your initial investment:
George's ID number is 101437746. The last five digits for the number above would be 37746. His annual salary would then be $37746 per year. Therefore, George has USD $37746 to decide on which company he wants to put all of his money in
Reminder to account for your initial investment, in this case $37746, before your future calculations. You'll use this table to determine your yearly profits in order to calculate NPV, IRR and the Payback period:
Profits Table Row # Year Amazoni Macrosoft Goofle 1 2013 - June Your Your Your Annual Annual Annual income/5 income/3 income/8 2 2014 - June 16310 41230 2802 3 2015 - June 2175 4610 2788 4 2016 - June 36280 5179 36790 5 2017 - June Your Your Your Annual Annual Annual income/6 income/4 income/2 6 2018 - June 8580 1000 5796 7 2019- June 9557 13697 5627 8 2020- June 12415 1872 7200 9 2021 - June 16734 25780 12151 10 2022 - June Your Your Your Annual Annual Annual income/7 income/2 income/5 You will have to calculate the highlighted values above based on your annual income for the questions belowStep by Step Solution
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