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FIN - Calculation of Compound Interest Rate of Return

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Question;A person is considering an investment situation that requires the investment of $100,000 at time zero and $200,00 at year one to generate profits of $90,000 per year starting at year two and runnning through year 10 (a 9 year profit period) with projected salvage value of $150,000 at the end of year 10.Determine the compound interest rate of return for these discrete end of period funds. Draw the cumulative cash position diagram for time zero through the end of year three at the project rate of return.

 

Paper#48582 | Written in 18-Jul-2015

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