- Question 1 10 Points Save Answer An Existing Bottling Plant Requires Investing 50 000 Per Year Starting Next Year For 1 1 (68.89 KiB) Viewed 21 times
Question 1 10 points Save Answer An existing bottling plant requires investing $50,000 per year starting next year for 10 years. The plant is expected to generate a revenue of $30,000 per year starting next year and increasing by $5000 per year thereafter the plant will be sold for $2500 after 10 years. The correct Standard Notation and expected Rate of Return is: OC -50,000 (PIA. '10) + (30,000+5000) (PIG, 14, 10) + 2,500 (P/F, 1*. 10) = 9.62% a 50.000 + 30,000 (PIA, T, 10)+5.000 (PIG, P. 10) +2,500 (P/F, i*, 10) = 0 and it=8.03% Ob 50,000 (PIA. 110) = 30,000 (PIA, 1, 10) + 5,000 (P/G, 1", 10) +2,500 (P/F, 1, 10) and i*= 6.77% e. None of these Od -50.000 (PIA, 1, 10)+30,000 (PIA, 7, 9) +5,000 (PIG,19) + 2,500 (P/F, i*, 10) and i = 12.77%