How much should you pay for such an investment

Reference no: EM131853012

Question: A profitable business venture promises to pay investors a monthly cash return of $1,900 for the next seven years. Having studies other investment alternatives, you believe that a reasonable return on your investment should be 12 percent compounded monthly.

a) How much should you pay for such an investment?

b) What will be the total sum of cash you will receive over the next seven years?

Reference no: EM131853012

Questions Cloud

Creating filter lists to be used to be cipa compliant : The FCC is the U.S. agency responsible for establishing the criteria for determining which methods are most effective for the creating filter

Develop a c console application : Develop a C# console application that implements two int arrays. One array will hold 10 randomly generated integer numbers, the second array

Discuss at least four characteristics of a good business : One of most important skills to learn in managerial economics is ability to identify a good business. Discuss at least four characteristics of a good business.

Concerned about securing cloud based system : An organization is concerned about securing their cloud based system and have come across the Common Vulnerabilities and Exposures (CVE) database

How much should you pay for such an investment : A profitable business venture promises to pay investors a monthly cash return of $1,900 for the next seven years. Having studies other investment alternatives.

Compute javier annual benefit on retirement : Javier recently graduated and started his career with DNL Inc. DNL provides a defined benefit plan to all employees. According to the terms of the plan.

Design of a sewage-treatment plant : The optimum design of a sewage-treatment plant involves minimizing the losses from possible over and under design. Altouney [1963] has reviewed 71

Briefly describe simons four phases of decision making : What guidelines can be learned from this vignette about developing DSS?List and briefly describe Simon's four phases of decision making.

Brief marketing plan for the business you wish to start : brief marketing plan for either business you wish to start, or an existing business of your choosing -topics for your plan from Marketing Plan Coach software

User Account

All Pages