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Question 9 : A proposed investment of $ 9 0 0 0 will produce annual revenues of $ 4 0 0 0 . The investment
Question : A proposed investment of $ will produce annual revenues of $ The investment risk is how long the revenue stream will continue. The given estimate of probabilities for the investment's duration appears reasonable. Regardless of N there will be no salvage value, and a before tax rate of return of is required. What are the expected present worth of the investment and its variance? Determine the probability of positive present worth?
Question : A proposed investment of $ will produce annual revenues of $ The
investment risk is how long the revenue stream will continue. The given estimate of
probabilities for the investment's duration appears reasonable.
Regardless of N there will be no salvage value, and a before tax rate of return of is
required. What are the expected present worth of the investment and its variance?
Determine the probability of positive present worth?
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