Question
Reggie has just taken over the management of a family business. He wants to make sure that he makes financial sense to keep the business
Reggie has just taken over the management of a family business. He wants to make sure that he makes financial sense to keep the business going. He could sell the building today for $530,000. Keeping the business going will require an $80,000 renovation now and generate an annual profit of $101,000 for the next 25 years (for simplicity, assume this is at the end of the year, starting a year from now). The discount/interest rate is 6%.
What are the GO and IRR of this decision?
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
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