he company earned a revenue of PhP75,500 at the end of fourth year, but then decreases geometrically by 18% per year through year 20. Assume that the company invested PhP100,000 before the start the of the business. a) Determine the present worth equivalent of all revenues during this 20-year time period at an interest rate of 12% per annum. Answer in 2 decimal places. b) What will be the future equivalent of all revenues during this 20-year time period? Answer in 2 decimal places. c) What is the annual worth equivalent of these revenues during the 20-year time period? Answer in 2 decimal places. d) What is the internal rate of return (in percentage) of this investment? Answe
The company earned a revenue of PhP75,500 at the end of fourth year, but then decreases geometrically by 18% per year through year 20. Assume that the company invested PhP100,000 before the start the of the business.
a) Determine the present worth equivalent of all revenues during this 20-year time period at an interest rate of 12% per annum. Answer in 2 decimal places.
b) What will be the future equivalent of all revenues during this 20-year time period? Answer in 2 decimal places.
c) What is the annual worth equivalent of these revenues during the 20-year time period? Answer in 2 decimal places.
d) What is the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images