MARR & Inflation Rate
Not what you're looking for?
Your brother needs $5000 to go to college. He cannot pay you back for 5 years. Then he will pay you $2,500 a year for the next 4 years. The first payment occurs 5 years from today and the total will be $10,000.
a) If your MARR is 10%, is this a good investment?
b) If the inflation rate is 5%, is this still acceptable? Provide quantitative justification for your answer.
Please show steps and all formulas.
Purchase this Solution
Solution Summary
The expert examines MARR and inflation rates. The first payment occurring is determined. The response addresses the queries posted in an excel file.
Education
- MBA (IP), International Center for Internationa Business
- BBA, University of Rajasthan
Recent Feedback
- "Thank You so much! "
- "Always provide great help, I highly recommend Mr. Sharma over others, thanks again. "
- "great job. I will need another help from you. "
- "first class!"
- "Thank you for your great notes. Will you be willing to help me with one more assignment? "
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.