SOLUTION: A project will have annual cash flows of $1200 for nine years. It costs $9000 to do. Is this a good project to do if the cost of money is 8%? Show the calculations that support

Question 181475: A project will have annual cash flows of $1200 for nine years. It costs $9000 to do. Is this a good project to do if the cost of money is 8%? Show the calculations that support your answer
Answer by vleith(2983) (Show Source): You can put this solution on YOUR website!
Total revenues are 9*1200 = 10800
Total cost is 9000
Total Profit is 1800
SO the question is - Is 1800 over 9 years a 'better than 8%' compounded yearly return?
Or is 10800 ,ore oney after 8 years than just putting the 9000 in paper paying 8%

So which would you want? 10800 or 17991 all other things equal?

RELATED QUESTIONS
A company is considering investing on a particular project. The alternative projects... (answered by Theo)

A company is considering implementing an investment opportunity in Dodoma. To identify... (answered by ikleyn)

25. You are invited by your no-good brother-in-law to participate in a dubious... (answered by lynnlo)

25. You are invited by your no-good brother-in-law to participate in a dubious investment (answered by lynnlo)

Marie who is a business woman seeks to invest her money in any of two projects X and Y... (answered by Theo)

Cricket World Cup (CWC) is considering a project proposal which requires an initial... (answered by CPhill)

(b) Given your interest in sports and computers, you are considering establishing a... (answered by solver91311)

How do I solve for X in excel? Consider the following project�s cash flows: (answered by Theo)