- Joined
- Jun 14, 2013
- Messages
- 5
- Reaction score
- 0
Please help me on how to compute for the following problem and what formula to use. I am confused. Should this be treated as FV? If so, what would be my PV? And where should I place the cash inflows per year? Thanks!!
You are thinking of starting a new product line that initially costs $32,000. Your annual projected cash inflows are as follow:
Year 1 -- $10,000
Year 2 -- $20,000
Year 3 -- $5,000
If you earn an interest of 10%, would you undertake this investment? Why?
You are thinking of starting a new product line that initially costs $32,000. Your annual projected cash inflows are as follow:
Year 1 -- $10,000
Year 2 -- $20,000
Year 3 -- $5,000
If you earn an interest of 10%, would you undertake this investment? Why?