A company is setting up a project to buld having Units in which the investment volume is estimated at one million dollars to build (100 houses), the price of the halse is (20,000) dollars, to be paid in equal installments for a period of (4 years), the amnual Costs are estimated at (50) thousand dollars. Calculate the Simple rate of returm, the payoack period and the internal rate of retum for the project, bearing in mind that the lowest discount wate is (8%) and the hiahest is (12%). Will the project be accepted or rejected?
A company is setting up a project to buld having Units in which the investment volume is estimated at one million dollars to build (100 houses), the price of the halse is (20,000) dollars, to be paid in equal installments for a period of (4 years), the amnual Costs are estimated at (50) thousand dollars. Calculate the Simple rate of returm, the payoack period and the internal rate of retum for the project, bearing in mind that the lowest discount wate is (8%) and the hiahest is (12%). Will the project be accepted or rejected?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![A
company is setting up a project to buld housing
Units in which the investment volume is estimated
at ane million dollars to build (100 houses), the price
of the house is (20,000) dollars, to be paid in equal
installiments for a periad of (4 years), the annual
Costs are estimated at (50) thousand dollars.
Calculate the Simple rate of returm, the payoack
period and the internal rate of retum for the
project, bearing in mind that the lowest discount
hiahest is (12'%). Will the project
be accepted or rejected.
rate is (8b) and the](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2e64d6df-a3b8-4fa4-ad8d-f60d4a6a8846%2F0560da66-dc52-4b08-8f0f-f1ed5965e06e%2Fjczwj5i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A
company is setting up a project to buld housing
Units in which the investment volume is estimated
at ane million dollars to build (100 houses), the price
of the house is (20,000) dollars, to be paid in equal
installiments for a periad of (4 years), the annual
Costs are estimated at (50) thousand dollars.
Calculate the Simple rate of returm, the payoack
period and the internal rate of retum for the
project, bearing in mind that the lowest discount
hiahest is (12'%). Will the project
be accepted or rejected.
rate is (8b) and the
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