1. A small business purchased now for P 500,000.00 will lose P96,000.00 each year for the first four years. An additional investment P300,000.00 is required at the end of fourth year. After 15 years...


1. A small business purchased now for P 500,000.00 will lose P96,000.00 each year for the<br>first four years. An additional investment P300,000.00 is required at the end of fourth<br>year. After 15 years the business can be sold for P700,000.00 . What should be the profit<br>each year from the 5th to 15th year to obtain a rate of return of 25%?<br>

Extracted text: 1. A small business purchased now for P 500,000.00 will lose P96,000.00 each year for the first four years. An additional investment P300,000.00 is required at the end of fourth year. After 15 years the business can be sold for P700,000.00 . What should be the profit each year from the 5th to 15th year to obtain a rate of return of 25%?

Jun 03, 2022
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