Answer:
5 years
Explanation:
Initital investment $100,000
Cash inflows 1-5 (20,000*5) ($100,000)
The payback period for this investment project is 5 years.
or
100,000/20,000=5 years
Answer:
understand
Explanation:
by understanding each other and work inline with the business goal in order to achieve the business objective
Answer:
share holder equity
Explanation:
it indicates how much of company's assets have been generated
Answer:
Their income after 20 years would be 72,550 dollars.
Explanation:
The income after 20 years can easily de determin by using compounding
formula
Future Value = Present Value (1 + I)^ 20
= 90,000 (1 + 0.03)^ 20
= 162,550 dollars
Income can be determing by subtracting Pv from Fv i.e
Income = 162,550 - 90,000 = 72,550
Calculation on excel sheet
A B C D
1 90,000 1.03 = A1 * 1.03 = C1-A1
2 = D1 1.03 = A2 * 1.03 = C2-A2
20 = D19 1.03 = A20 * 1.03 = A20 - C20
* In work sheet colunm D will show income on investment.
Answer:
After 18.44 year loan will be paid
Explanation:
We have given an entrepreneur borrows $500,000 today.
So total amount is $500000
Annual payment is of $70000
Rate of interest r = 11.5 %
We have to find the time period
We know that total amount is given by
, here A is total amount , P is yearly paid amount, r is rate of interest and n is time period
So 
Taking log both side
n = 18.44 year
So after 18.44 year loan will be paid
