Business Math Lesson 18: Investment Decisions, part 4
Channel: Amy Goldlist
Date: 2021-05-27

You are considering investing in a business.  The business is expected to cost $60,000 and require another $10,000 in immediate renovations.  The business is expected to return $20,000 per year for 4 years and then $40,000 after the fifth year.  The company requires a 10% rate of return. 

a. Calculate the payback for the business

b. Calculate the NPV for the business

c. Calculate the Internal rate of return