Nu Things, Inc., is considering an investment in a business venture with the following anticipated cash flow results: ΕΟΥ Cash Flow -$85,000 1 $21,000 2 $20,000 3 $19,000 4 $18,000 5 $17,000 $16,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Determine the investment's worth.%

Nu Things, Inc., is considering an investment in a business venture with the following anticipated cash flow results:
EOY Cash Flow
-$85,000
$21,000
2
$20,000
3
$19,000
4
$18,000
5
$17,000
6
$16,000
7
$15,000
8
$14,000
9
$13,000
10
$12,000
11
$11,000
12
$10,000
13
$9,000
14
$8,000
15
$7,000
16
$6,000
17
$5,000
18
$4,000
19
$3,000
20
$2,000
Assume MARR is 20% per year. Based on an external rate of return analysis:
Transcribed Image Text:Nu Things, Inc., is considering an investment in a business venture with the following anticipated cash flow results: EOY Cash Flow -$85,000 $21,000 2 $20,000 3 $19,000 4 $18,000 5 $17,000 6 $16,000 7 $15,000 8 $14,000 9 $13,000 10 $12,000 11 $11,000 12 $10,000 13 $9,000 14 $8,000 15 $7,000 16 $6,000 17 $5,000 18 $4,000 19 $3,000 20 $2,000 Assume MARR is 20% per year. Based on an external rate of return analysis:
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