How much did it have to earn in the first year

Reference no: EM131006887

1. A start-up company with multiple nano technol- ogy products established a goal of making a rate of return of at least 30% per year on its invest- ments for the first 5 years. If the company ac- quired $200 million in venture capital, how much did it have to earn in the first year?

2. Valley Rendering, Inc. is considering purchasing a new flotation system for recovering more grease. The company can finance a $150,000 system at 5% per year compound interest or 5.5% per year simple interest. If the total amount owed is due in a single payment at the end of 3 years,

(a) which interest rate should the company select, and

(b) how much is the difference in interest between the two schemes?

Reference no: EM131006887

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