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Hats & Brooms Unlimited is considering a new project. It would require $231 as initial investment. In the next 4 years it would generate profits

Hats & Brooms Unlimited is considering a new project. It would require $231 as initial investment. In the next 4 years it would generate profits in the following amounts:

  • $94 in year 1
  • $78 in year 2
  • $61 in year 3
  • $141 in year 4

The annual return that is required for projects of this kind is 5.1 %

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