Nu Things, Inc., is considering investing in a business venture with the following anticipated cash flow results: EOY Cash Flow 0 -$70,000 1 $20,000 2 $19,000 3 $18,000 4 $17,000 5 $16,000 6 $15,000 7 $14,000 8 $13,000 9 $12,000 10 $11,000 11 $10,000 12 $9,000 13 $8,000 14 $7,000 15 $6,000 16 $5,000 17 $4,000 18 $3,000 19 $2,000 20 $1,000
Nu Things, Inc., is considering investing in a business venture with the following anticipated cash flow results: EOY Cash Flow 0 -$70,000 1 $20,000 2 $19,000 3 $18,000 4 $17,000 5 $16,000 6 $15,000 7 $14,000 8 $13,000 9 $12,000 10 $11,000 11 $10,000 12 $9,000 13 $8,000 14 $7,000 15 $6,000 16 $5,000 17 $4,000 18 $3,000 19 $2,000 20 $1,000
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter6: Saving And Investing
Section6.2: Investing: Taking Risks With Your Savings
Problem 4R
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Q 2.
Nu Things, Inc., is considering investing in a business venture with the following anticipated cash flow results:
EOY |
Cash Flow |
---|---|
0 |
-$70,000 |
1 |
$20,000 |
2 |
$19,000 |
3 |
$18,000 |
4 |
$17,000 |
5 |
$16,000 |
6 |
$15,000 |
7 |
$14,000 |
8 |
$13,000 |
9 |
$12,000 |
10 |
$11,000 |
11 |
$10,000 |
12 |
$9,000 |
13 |
$8,000 |
14 |
$7,000 |
15 |
$6,000 |
16 |
$5,000 |
17 |
$4,000 |
18 |
$3,000 |
19 |
$2,000 |
20 |
$1,000 |
Assume MARR is 20 percent per year. Based on an
Determine the investment’s worth: enter percentages rounded to 1 decimal place %
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