In an investment case, 1 million investment is required at the end of the 4th and 5th year, a profit of 2 million at the end of the 9th year, and a profit of 3 million at the end of the 10th year, and the annual interest i = 5% of bank loans. [a] Draw a Cash Flow diagram. [b] Taking the end of the tenth year as the closing date, find P, F, and A respectively. [c] Is it worth investing in this case?

In an investment case, 1 million investment is required at the end of the 4th and 5th year, a profit of 2 million at the end of the 9th year, and a profit of 3 million at the end of the 10th year, and the annual interest i = 5% of bank loans. [a] Draw a Cash Flow diagram. [b] Taking the end of the tenth year as the closing date, find P, F, and A respectively. [c] Is it worth investing in this case?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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