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How long will it take to recover the investment presented at 10% interest rate under the independent scenarios mentioned below? (14 points) Investment $11,500 Scenario
How long will it take to recover the investment presented at 10% interest rate under the independent scenarios mentioned below? (14 points) Investment $11,500 Scenario 1 - with a gradient of $2,388 Scenario 2 - with an annuity of $3,034 Make sure that you prepared a detailed solution on a separate sheet of paper including the following: o the required cash flow diagrams (4 pts.) o clearly present the equivalency models (4 pts.) o show ALL calculations (4 pts.) o if Microsoft Excel is used to solve the problem, use a different sheet for each problem What is the time to recover the investment based on scenario 1 (gradient)? (1 pt. v Choose... 6 years What is the time to recover the investment based on scenario 2 (annuity)? (1 pt.) 5 years
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