Nu Things, Inc., is considering an investment in a business venture with the following anticipated cash flow results: EOY Cash Flow 0 -$95,000 1 $28,000 2 $27,000 3 $26,000 4 $25,000 5 $24,000 6 $23,000 7 $22,000 8 $21,000 9 $20,000 10 $19,000 11 $18,000 12 $17,000 13 $16,000 14 $15,000 15 $14,000 16 $13,000 17 $12,000 18 $11,000 19 $10,000 20 $9,000 Assume MARR is 20% per year. Based on an external rate of return analysis: Part a Determine the investment's worth: % Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.

Nu Things, Inc., is considering an investment in a business venture with the following anticipated cash flow results: EOY Cash Flow 0 -$95,000 1 $28,000 2 $27,000 3 $26,000 4 $25,000 5 $24,000 6 $23,000 7 $22,000 8 $21,000 9 $20,000 10 $19,000 11 $18,000 12 $17,000 13 $16,000 14 $15,000 15 $14,000 16 $13,000 17 $12,000 18 $11,000 19 $10,000 20 $9,000 Assume MARR is 20% per year. Based on an external rate of return analysis: Part a Determine the investment's worth: % Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 6E

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EOY	Cash Flow
0	-$95,000
1	$28,000
2	$27,000
3	$26,000
4	$25,000
5	$24,000
6	$23,000
7	$22,000
8	$21,000
9	$20,000
10	$19,000
11	$18,000
12	$17,000
13	$16,000
14	$15,000
15	$14,000
16	$13,000
17	$12,000
18	$11,000
19	$10,000
20	$9,000

Part a

Determine the investment's worth: %

Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.

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