What rate of return per month will an entrepreneur make over a 2½-year project period if he invested $150,000 to produce portable 12-volt air compres­sors? His monthly costs are $27,000 and his reve­nues are $33,000.

What will be an ideal response?


0 = -150,000 + (33,000 – 27,000)(P/A,i*,30)
(P/A,i*,30) = 25.0000
i* = 1.2% per month (interpolation or spreadsheet)

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What will be an ideal response?

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What will be an ideal response?

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