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Q 1 ) A small company purchased now for R . O . 2 5 , 0 0 0 will lose R . O .

Q1) A small company purchased now for R. O.25,000 will lose R. O.1,200 each year the first four years An additional R O.5,000 invested in the company during the fourth year will result in a profit of R. O.5,500 each year from the fifth year through the fiftern year. At the end of 15 years, the company can be sold for RO 33,000.(MARR =12%)
(a) Draw a cash flow diagram for the investment
(b) Calculate the ERR when =12%
(c) Is this investment feasible?
(a)
+33000
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