What is the present value (PV) of an investment?
3 answers
If total revenue function is equal TR=5e-0.1t, then, total revenue two years from now equals
Find the internal rate of return of an investment project which requires an initial outlay of 800 and will produce a return of 2000 at the end of 5 years.Then,is it worth it if the capital could invested elsewhere at 15% compounded annually
P = Po(1+r)^5 = 2,000
800(1+r)^5 = 2000
(1+r)^5 = 2.5
1+r = 1.20
r = 0.20 = 20%.
800(1+r)^5 = 2000
(1+r)^5 = 2.5
1+r = 1.20
r = 0.20 = 20%.
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