How to solve this problem?
vitalstrike82
Registered Users Posts: 4 ■□□□□□□□□□
in Project+
Hi all,
does any one knows how to solve this problem as shown below? Thanks
Project XYZ promise to be worth $587,000 in three years. Assuming that the rate of return is currently six percent, what is the minimum amount of funds that Project XYZ may cost and still be initiated if the organisation wants to earn at least $75,000 on the project?
A) $492,863
This answer depends on the cost of project resources
C) $417,863
D) $512,000
does any one knows how to solve this problem as shown below? Thanks
Project XYZ promise to be worth $587,000 in three years. Assuming that the rate of return is currently six percent, what is the minimum amount of funds that Project XYZ may cost and still be initiated if the organisation wants to earn at least $75,000 on the project?
A) $492,863
This answer depends on the cost of project resourcesC) $417,863
D) $512,000
Comments
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NOLAJ
Member Posts: 490
At first glance, there doesn't seem to be enough information given. I would have to go with B.).WGU - MBA: I.T. Management --> Graduated!!
WGU - B.S. Information Technology—Network Administration --> Graduated!!
:thumbup: -
vitalstrike82
Registered Users Posts: 4 ■□□□□□□□□□
Hi all,
The answer given by the test is C
i found the working to this question.
Future value: 587,000
I/Y: 6%
N= 3
Therefore the va;ue of 587,000 in three years is worth 492,857
The cost they must incurred shall be 492,860-75,000 = 417,863
My question is will the comptia exam present such a question? This is related somehow to a finance question. Manage to pull out my finance textbook to solve this question