Q5: Anees is planning to make an investment of Rs. 40,000 for a period of 4 years and the expected cash inflows from that investment are given below: Years Cash Flows 1 15,000 2 10,000 3 8,500 16,000 If his required rate of return from that investment is 10%, should he make that investment or not?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 28P
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Q5: Anees is planning to make an investment of Rs. 40,000 for a period of 4 years and the
expected cash inflows from that investment are given below:
Years
Cash Flows
1
15,000
2
10,000
3
8,500
4
16,000
If his required rate of return from that investment is 10%, should he make that investment or not?
Transcribed Image Text:Q5: Anees is planning to make an investment of Rs. 40,000 for a period of 4 years and the expected cash inflows from that investment are given below: Years Cash Flows 1 15,000 2 10,000 3 8,500 4 16,000 If his required rate of return from that investment is 10%, should he make that investment or not?
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