Bob burgers assume that there will be hurdle rate

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Reference no: EM131878347

Burger Investment: Bob's Burgers needs to decide whether or not they should invest. Bob's Burger's initial payment would be $10,000. In Year One the Burger joint has to outlay an extra $1,000. However, Bob's Burgers will get an inflow of $1,8000. In Year Two, the Burger joint's outflow is $500, and the inflow is $1,200. In Year Three, the Burger joint's outflow is $600, and the inflow is $2,500. In Year Four, the Bob's Burgers joint's outflow is $0, and the inflow is $7,000. The owners of Bob's Burgers assume that there will be a hurdle rate of 6%, should they make the investment?

Please show the steps using both a calculator and excel.

Reference no: EM131878347

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