Does this investment make sense

Assignment Help Financial Management

Reference no: EM131937068

An investment costs dollar 1000 up front, but won't start paying off until three years from now, at which time it will return dollar 150 per year for a period of ten years.

If your hurdle rate is 6 percentage, does this investment make sense?

Reference no: EM131937068

Questions Cloud

What percent of the recommended dri for dietary fiber : From Reports, select Intake vs. Goals. Make the date range the past 3 days. Over the past 3 days what percent of the recommended DRI for Dietary Fiber

How much interest will be paid each quarter : An investment pays 10% per annum with continuous compounding. However, interest is paid out each quarter.

Provide an application to calculate overdue charges : Your city library has hired you on a consulting basis to provide them with an application to calculate overdue charges.

How does change in leverage affect the firm return on equity : In an M&M world, how will this change affect the firm's WACC, the expected return on the firm's new assets? How does the change in leverage affect the firm's.

Does this investment make sense : An investment costs dollar 1000 up front, but won't start paying off until three years from now, at which time it will return dollar 150 per year for a period.

Paternity and family relationship identification : Genetic fingerprinting technology can be a very useful tool to conclusively identify and establish a biological relationship between children and a parent.

Write an interactive program that requires the mechanic : Wright's Garage wants an interactive program that requires the mechanic to enter the tire pressure from four tires on any given car that comes into the garage.

What is the clinic variable cost rate : Assume that Good health Clinic has fixed costs of $1 million and a total cost forecast of $1.5 million at a volume of 20,000 patient visits.

Specific information from the article : Asks a thoughtful question, refers to specific information from the article, adds your own ideas or reasons for asking the question or indicates

User Account

All Pages