Question

A third-year college friend of yours opened a Mike's Bike repair shop when he was a freshman working on a sociology degree. He shared his NCF figures for the 3 years, including the $17,000 amount that it took to get started in business.

a) determine the number of possible rate of return values.

b) find all i* values between -50% and 110% by plotting PW versus i* for your friend. (Use 20% increments)

Answer 1