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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Find the ROI for the following 5-year venture. Interest is compounded quarterly. Draw the net worth diagram that shows the net worth at each year.
-Purchase $20,000 of equipment and pay 5,000 to have it installed.
-Pay 1,500 for utilities at the end of each year.
-Earn $10,000 income at the end of the first year, then 20,000 at the ends of each of the next years.
-Sell the equipment for $2000
The answer should be 47.6%. Please draw a cash flow diagram as well as a net-worth diagram that shows the net worth at each year and show the calculations for the ROI.
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