Is this profitable investment if the discount rate

Assignment Help Financial Management

Reference no: EM13911200

Suppose an initial investment of $100 will return $50/year for three years (assume the $50 is received each year at the end of the year). Is this a profitable investment if the discount rate is 20%?

Reference no: EM13911200

Questions Cloud

Polaris must assign overhead costs to its products : Polaris must assign overhead costs to its products.

State the objective of a group support system : State the objective of a group support system (GSS) and identify three characteristics that distinguish it from a DSS.

Compute the cost of capital for the firm : (Individual or component costs of capital) Compute the cost of capital for the firm for the following: A bond that has a $1000 par value (face value) and a contract or coupon interest rate of 11 percent. Interest payments are $55.00 and are paid semi..

Activity based costing is only useful for manufacturing : Arctic Cat is a manufacturer. It is said that: Activity based costing is only useful for manufacturing companies. Is this a true statement? Explain.

Is this profitable investment if the discount rate : Suppose an initial investment of $100 will return $50/year for three years (assume the $50 is received each year at the end of the year). Is this a profitable investment if the discount rate is 20%?

What is the present value-cover college expenses : Beginning three months from now, you want to be able to withdraw $3,100 each quarter from your bank account to cover college expenses over the next four years. If the account pays .53 percent interest per quarter, how much do you need to have in your..

What are the components of a decision support system : What are the components of a decision support system?

What is your expected rate of return : The common stock of bouncy bob is selling for $33.84. the stock recently paid dividends of $3 per share and has a projected constant growth rate of 8.5%. If you purchase the stock at the market price, what is your expected rate of return?

What are the stages of problem solving : What are the stages of problem solving?

User Account

All Pages