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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.
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
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