Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q6) A business man invested in a project with the following cash flow. Initial investment $100,000; AOC $5000per year, the project life is 10 years.

image text in transcribedimage text in transcribed

Q6) A business man invested in a project with the following cash flow. Initial investment $100,000; AOC $5000per year, the project life is 10 years. Revenue years (1-5) $10,000 Years (5-10) $12,000. He received a lump sum payment of $50,000 at the end of year 5, and another payment of $60,000 in year 10. Calculate the rate of return on his investment (15 Marks) 6) A business an invested in a project with the following cash flow Initial investment S100,000 AOC Sper year, the project life is 10 years. Revenge years (1-5) $10.000. Years (5-10) 512.000. He received a lump sum payment of 50.000 at the end of years, and another payment of 560,000 in year 10. Calculate the rate of return on his investment. (15 Marks

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Final Work On Internal Audit Internal Audit And Its Management

Authors: Silvia Mamani

1st Edition

6203099651, 978-6203099652

More Books

Students also viewed these Accounting questions