Task (following on from the previous part): Assume that the fund may borrow or lend money at 1.0% per annum. Determine whether or not the business venture is profitable, and find the profit or loss when the project ends in 50 years' time. Answer: It is clear that NPV(i) changes sign from [Select] 1 at io, as the outlays take place [ Select] V income is generated. Hence, [ Select ] and the project is (Select] 4 In fact, the profit in 50 years' time is [ Select ] (5) [ Select] [Select] 1% = 11 10 [ Select] [ Select ] profitable not profitable [ Select] > [Select ] NPV(i_1).(1 + i 1)^50 = 6.6774m NPV(i_1). (1 +i_0)^50 = 8.54753m NPV(i_0). (1+i+1)^50 = 542.555 NPV(i_0). (1 + i_0)^50 = 694.508 Task (following on from the previous part): Assume that the fund may borrow or lend money at 1.0% per annum. Determine whether or not the business venture is profitable, and find the profit or loss when the project ends in 50 years' time. Answer: It is clear that NPV(i) changes sign from [Select] 1 at io, as the outlays take place [ Select] V income is generated. Hence, [ Select ] and the project is (Select] 4 In fact, the profit in 50 years' time is [ Select ] (5) [ Select] [Select] 1% = 11 10 [ Select] [ Select ] profitable not profitable [ Select] > [Select ] NPV(i_1).(1 + i 1)^50 = 6.6774m NPV(i_1). (1 +i_0)^50 = 8.54753m NPV(i_0). (1+i+1)^50 = 542.555 NPV(i_0). (1 + i_0)^50 = 694.508