Hi!
I have this problem
A factory can be purchased in $ 1 million, factory produces 2000 units a month a certain item that will be sold during the first six months the unit $30 and unit $50 over the next six months .
The investor thinks he can sell the factory at the end of a year in the sum of 1.2 million. If the investor usually wins in all business 5 % per month , I would advise buying the factory?
answer is: yes, 'cause today income is 1351502.28 and expenses are 1 million
My attempt:
i obtain that in the first 6 months they gain 360000 and in another 6 months they gain 600000
trying to solve for perpetual annuity i obtain that gain is 19200000
vp=360000/0.05 + 6000/0.05
which is really far from real answer
what i'm doing wrong?
I have this problem
A factory can be purchased in $ 1 million, factory produces 2000 units a month a certain item that will be sold during the first six months the unit $30 and unit $50 over the next six months .
The investor thinks he can sell the factory at the end of a year in the sum of 1.2 million. If the investor usually wins in all business 5 % per month , I would advise buying the factory?
answer is: yes, 'cause today income is 1351502.28 and expenses are 1 million
My attempt:
i obtain that in the first 6 months they gain 360000 and in another 6 months they gain 600000
trying to solve for perpetual annuity i obtain that gain is 19200000
vp=360000/0.05 + 6000/0.05
which is really far from real answer
what i'm doing wrong?