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You Are Considering an Investment That Costs $2,000

Question 2

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You are considering an investment that costs $2,000. It is expected to have a useful life of 3 years. You are very
confident about the revenues during the first and the third year, but you are unsure about the revenue in year 2.
If you hope to make at least a 10% rate of return on your investment ($2,000), what should be the minimum
revenue in year 2? You are considering an investment that costs $2,000. It is expected to have a useful life of 3 years. You are very confident about the revenues during the first and the third year, but you are unsure about the revenue in year 2. If you hope to make at least a 10% rate of return on your investment ($2,000), what should be the minimum revenue in year 2?

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