Answer to Question #98975 in Finance for Ebrahim Darsot

Question

An investor wishes to purchase a business for one million dollars. The business is expected to run for 5
years and the following net returns are expected.

Year 1 : $200 000
Year 2 : $300 000
Year 3 : $180 000
Year 4 : $195 000
Year 5 : $150 000
Should the investor buy the business? The business is expected to return at least 10% per annum.
(9 marks)

Answer 1

Dear Ebrahim Darsot, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order