Question
You consider buying a business for R 600 000. The business is expected to run for 5 years and the following net returns are expected.
You consider buying a business for R 600 000. The business is expected to run for 5 years and the following net returns are expected.
YEAR 1 : R 160 000
YEAR 2 : R 250 000
YEAR 3 : R 190 000
YEAR 4 : R 180 000
YEAR 5 : R 130 000
Should you buy the business? A project of this type is expected to return at least 11% per annum.
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Foundations Of Finance
Authors: Arthur J Keown, John D Martin, J William Petty
7th Edition
0133370356, 9780133370355
