After analyzing a project economically, figures were obtained: initial investment, $310000; annual net profit of $130000 each year for five years; salvage value of assets at the end of the fifth year, $160000. the following years; salvage value of assets at the end of the fifth year, $160000. The The cash contributions for the initial investment were: shareholders $186,000, ARMR = 43%, bank A $62,000, bank B $62,000. 43%, bank A $62000, TMAR 45%; bank B $62000 of the investment with TMAR of 49%. Calculate the blended AUM. a) 44.6% b) 46.4% c) 42.6% d) N.A
After analyzing a project economically, figures were obtained: initial investment, $310000; annual net profit of $130000 each year for five years; salvage value of assets at the end of the fifth year, $160000. the following years; salvage value of assets at the end of the fifth year, $160000. The The cash contributions for the initial investment were: shareholders $186,000, ARMR = 43%, bank A $62,000, bank B $62,000. 43%, bank A $62000, TMAR 45%; bank B $62000 of the investment with TMAR of 49%. Calculate the blended AUM. a) 44.6% b) 46.4% c) 42.6% d) N.A
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section10.A: Mutually Exclusive Investments Having Unequal Lives
Problem 4P
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