FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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3. (20 points) You are considering an investment that costs $2,000. It is expected to have a useful
life of four years. You are very confident about the revenues during the first two years but you
are unsure about the revenue in year 3 and 4. If you hope to make at least 10% rate of return
on your investment, what should be the minimum revenue in year 3 and 4?
Year Cash Flow
-$2,000
$1,000
$1,200
$X
1
3.
4
$X
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Transcribed Image Text:3. (20 points) You are considering an investment that costs $2,000. It is expected to have a useful life of four years. You are very confident about the revenues during the first two years but you are unsure about the revenue in year 3 and 4. If you hope to make at least 10% rate of return on your investment, what should be the minimum revenue in year 3 and 4? Year Cash Flow -$2,000 $1,000 $1,200 $X 1 3. 4 $X
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