Should USC Physicians invest

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Reference no: EM133152335

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Q1. USC Physicians aspire to eventually expand their operations to construct a rheumatology clinic at the end of 7 years.

a. If they want to calculate how much they will need to invest to have a future sum of $2,000,000, at 9% interest what is this amount?

b. if a similar rheumatology-related clinic investment would require an initial investment of $980,000, should USC Physicians invest?

Q2. USC Physicians wants to look at other investment options to grow its working capital budget.

a. If a bank presents them with a 6-year investment option of investing $1000 and receiving $2100 at the end of the length of the investment, what is that interest rate?

b. If a different financial institution offers them another investment option of investing $2000 over a 4-year period and receiving a future value of $3100, what is this interest rate?

c. Based purely on interest rates, from an interest growth compounding perspective which investment option would you pick?

Reference no: EM133152335

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