How are the investments different

Reference no: EM132760268

Question: Think about the cash flows associated with putting in the bank for five years, assuming you draw out the interest each year and then close the account. Now think about a set of hypothetical cash flows associated with putting the same money in a business, operating for five years, and then selling out. Write an explanation of why the IRR on the business project is like the bank's interest rate. How are the investments different?

Reference no: EM132760268

Questions Cloud

What was dominic inc net cash flow from operating activity : Using the indirect method, what was Dominic, Inc.'s net cash flow from operating activities for the year ended December 31, 2020?

Find the net present value for janet cara-van company : Janet Cara-Van Company plans to acquire equipment costing USD 600,000.Find the net present value if the minimum acceptable rate of return on investment is 16%.

What is the standard score for the eruption : The average duration of the sample of Old Faithful eruptions is 3.5 minutes, with a standard deviation of 1.1 minutes. The maximum value observed.

What quantity of output will need to sell : If it wishes to have a monthly net income before taxes of USD 20,000.00 and its cost structure remains as above, what quantity of output will it need to sell?

How are the investments different : Think about the cash flows associated with putting in the bank for five years, assuming you draw out the interest each year and then close the account.

Discuss the characteristics of each type of facilities : Discuss the characteristics of each type of facilities. ABC Enterprise is a traditional hardware retail shop in Mount Austin, Johor Bahru.

How much will be presented in investment property : Angel Company owns 90% of Carnation Inc. In its individual financial statements, how much will be presented in investment property?

How does exercising christian principles play a part : Consider the potential conflict between corporate social responsibility and ethics while maximizing share holder wealth. How does exercising.

Find What was average days of inventory : Find What was its average days of inventory? Your company had $13 million in sales last year. Its cost of goods sold was $9.1 million and its average inventory

User Account

All Pages