What is the most he is willing to pay for your project

Reference no: EM13333744

You have a project that will return annual end of year cash flows of $500,000 for 5 years. Your project will require and initial investment of $1,200,000.

(a) (15 pts) You want to sell your project to an investor who requires 25% APR return on his money, compounded monthly. What is the most he is willing to pay for your project??

(b) (15 pts) You want to sell your project to an investor who requires 18% APR return on his money, compounded monthly. What is the most he is willing to pay for your project??

Reference no: EM13333744

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