Q. The following table contains a summary of how a project’s balance is expected to change over its 5 year service life at 10% interest.:Which of the following statements is incorrect? (Solved)
1. the net present worth of the project at 10% interest is $1,242
2. the required additional investment at the end of period 1 is $500
3. the net future of the project at 10% interest is $2,000
4. within 2 years, the company will recover all its investments and the cost of funds (interest) from the project
- b. the required additional investment at the end of period 1 is $500