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Your company is offered a project that will yield $145,000 in two years. The project requires an investment of $125,000 now. You could otherwise save
- Your company is offered a project that will yield $145,000 in two years. The project requires an investment of $125,000 now. You could otherwise save those funds to earn an interest rate of 7.5%
- If you saved the funds, how much money would you have after two years?
- If you wanted $145,000 in the bank after two years, how much would you have to invest today?
- What is the net benefit of the project in two years? Should your company undertake the project?
- What is the net benefit of the project today? Should your company undertake the project?
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