Question
Nu Things, Inc., is considering an investment in a business venture with the following anticipated cash flow results: EOY Cash Flow 0 -$85,000 1 $24,000
Nu Things, Inc., is considering an investment in a business venture with the following anticipated cash flow results:
| EOY | Cash Flow |
| 0 | -$85,000 |
| 1 | $24,000 |
| 2 | $23,000 |
| 3 | $22,000 |
| 4 | $21,000 |
| 5 | $20,000 |
| 6 | $19,000 |
| 7 | $18,000 |
| 8 | $17,000 |
| 9 | $16,000 |
| 10 | $15,000 |
| 11 | $14,000 |
| 12 | $13,000 |
| 13 | $12,000 |
| 14 | $11,000 |
| 15 | $10,000 |
| 16 | $9,000 |
| 17 | $8,000 |
| 18 | $7,000 |
| 19 | $6,000 |
| 20 | $5,000 |
Assume MARR is 20% per year. Based on an external rate of return analysis: Determine the investment's worth. %
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Economics Of Money Banking And Financial Markets
Authors: Frederic Mishkin
5th Edition
0134734203, 978-0134734200
