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Say you invest 60,000 today. You will get 20,000 in year 1, 30,000 in year 2 and 20,000 in year 3. Is the project profitable?
Say you invest 60,000 today. You will get 20,000 in year 1, 30,000 in year 2 and 20,000 in year 3. Is the project profitable? Show by calculating the Net Present Value Calculation (NPV). Use an interest rate of 15%.
2. Say you invest 60,000 today. You will get 20,000 in year 1, 7,000 in year 2 and 3,000 in year 3. Should you invest? Your time frame is to recover within 5 years. Show by using Payback Method. Use an interest rate of 15%.
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