Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 41

Assume you are an investor with a large amount of ready cash, looking for an innovative solar energy product. What amount would you be willing to offer for the business at this point (end of year 12) if you require a 12% per year return on all your investments and, if purchased, you plan to own the business for 12 additional years To help make the decision, assume the current NCF series continues increasing at $5000 per year for the years you would own it. Explain your logic for offering this amount.