3. (20 points) You are considering an investment that costs $2,000. It is expected to have a useful life of four years. You are very confident about the revenues during the first two years but you are unsure about the revenue in year 3 and 4. If you hope to make at least 10% rate of return on your investment, what should be the minimum revenue in year 3 and 4? Year Cash Flow -$2,000 $1,000 $1,200 $X 4 $X 123
3. (20 points) You are considering an investment that costs $2,000. It is expected to have a useful life of four years. You are very confident about the revenues during the first two years but you are unsure about the revenue in year 3 and 4. If you hope to make at least 10% rate of return on your investment, what should be the minimum revenue in year 3 and 4? Year Cash Flow -$2,000 $1,000 $1,200 $X 4 $X 123
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 5PB: Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated...
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