Rate of return
For Greenwood Fertilizer:-
=(1+r)^4 = 8/5
=(1+r)^4 = 1.6
= (1+r) = 1.6^1/4
= (1+r) = 1.124683
r = 1.124683-1 = 0.1246 = 12.46%
For Brian and Peter's
= (1+r)^6 = 8/4
= (1+r)^6 = 2
= (1+r) = 2^1/6
= (1+r) = 1.1224
r = 1.1224-1 = 0.1224 = 12.24%
Problem 3.2 Nature's Treasure tree farm is trying to decide which fertilizer to use to grow...
Nature's Treasure tree farm is trying to decide which fertilizer to use to grow its trees. It can either buy the famous Greenwood Fertilizer, which costs $5 and can grow trees which can be sold for $8 in 4 years, or it can buy Brian and Peter's Fertilizer which costs $4 and can grow trees which can be sold for $8 in 6 years. What is the rate of return of each option? (5x2 points)
Nature’s Treasure tree farm is trying to decide which fertilizer to use to grow its trees. It can either buy the famous Greenwood Fertilizer, which costs $5 and can grow trees which can be sold for $8 in 4 years, or it can buy Brian and Peter’s Fertilizer which costs $4 and can grow trees which can be sold for $8 in 6 years. What is the rate of return of each option?
Problem 4 A) A local tree farm is trying to decide which fertilizer to use to grow its trees. It can either buy the famous Greenwood Fertilizer, which costs $5 and can grow a tree which can be sold for $8 in 2 years, or it can buy Brian and Peter’s Fertilizer which costs $4 and can grow a tree which can be sold for $10 in 5 years. (15 points) What is the NPV of each option given an...
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A firm is trying to decide which of the two automated packaging equipment to install. For the first option a company can save $44,000 per year in labor but will incur an additional maintenance parts cost after the 3-year warranty period. In year 4, the maintenance parts will cost $900 and will increase in year 5 to 8 by $125 per year. For the second option, the company can save $49,000 per year but will incur additional yearly maintenance parts...
solve by hand A firm is trying to decide which of the two automated packaging equipment to install. For the first option a company can save $44,000 per year in labor but will incur an additional maintenance parts cost after the 3-year warranty period. In year 4, the maintenance parts will cost $900 and will increase in year 5 to 8 by $125 per year. For the second option, the company can save $49,000 per year but will incur additional...
Stephen, MN heveUSDOT 0 Betsy Jensen stands near one of the farm trucks parked at the family farm near Stephen, Minn., on Monday. Dan Gunderson | MPR News Now that spring has finally arrived in Minnesota, the Jensen family is scrambling to get crops planted on their northern Red River Valley farm. But the usual optimism of a spring planting season is tempered this year by worries about the ongoing trade dispute between the United States and China. China has...
Stephen, MN heveUSDOT 0 Betsy Jensen stands near one of the farm trucks parked at the family farm near Stephen, Minn., on Monday. Dan Gunderson | MPR News Now that spring has finally arrived in Minnesota, the Jensen family is scrambling to get crops planted on their northern Red River Valley farm. But the usual optimism of a spring planting season is tempered this year by worries about the ongoing trade dispute between the United States and China. China has...
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