Find the ROI foe the five year venture

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Reference no: EM131464133

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

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.

Reference no: EM131464133

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