The cashflows C, (where the time is measured in years and the amounts are in 000) for two business ventures are as follows: Venture
The cashflows C, (where the time is measured in years and the amounts are in 000) for two business ventures are as follows: Venture 1: Co=-100, C=-40, C = +50, C = +120 Venture 2: C = -45, C = +25, C = +25, Cg = +25 Calculate the accumulated profit at time 5 and the net present value for each of these ventures using a risk discount rate of 15% per annum. A speculator borrows 50,000 at an effective interest rate of 8% per annum to finance a project that is expected to generate 7,500 at the end of each year for the next 15 years. Find the discounted payback period for this investment.
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