PLS ANSWER Q5 and Q6 Q5:If Farah Manufacturing wants its investments todouble in value in 4 years, what rate of returnwould it have to make on the basis of (a) simpleinterest and (b) compound interest?Construct a cash flow diagram for the following:$10,000 outflow at time zero, $3000 per year in-flow in years 1 through 5 at an interest rate of 10%per year, and an unknown future amount in year 5.

Introduction: Simple Interest:A specified proportion of the principal amount borrowed or loaned that…

Answered: Q5: If Farah Manufacturing wants its…

Q5: If Farah Manufacturing wants its investments to double in value in 4 years, what rate of return would it have to make on the basis of (a) simple interest and (b) compound interest?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

PLS ANSWER Q5 and Q6

Q5:
If Farah Manufacturing wants its investments to
double in value in 4 years, what rate of return
would it have to make on the basis of (a) simple
interest and (b) compound interest?
Construct a cash flow diagram for the following:
$10,000 outflow at time zero, $3000 per year in-
flow in years 1 through 5 at an interest rate of 10%
per year, and an unknown future amount in year 5.

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