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You've graduated from college and are now working in an investment firm where you advise clients on investment decisions. Here is the information on a proposed project. Up-front cost: $300,000 Next year's revenue: $15,000 Real interest rate: 8% Depreciation rate: 10% How much profit does the project yield, and should your client invest in the project

Respuesta :

batolisis

Answer:

-$285,000

Client should not invest in the project

Explanation:

Up-front cost : $300,000

Next year's revenue : $15,000

Real interest rate : 8%

Depreciation rate : 10%

Determine how much profit the project will yield

Profit = Revenue - cost

         = 15,000 - 300,000

         = - $285,000

No the Client should not invest in the project