Determine how much compensation return you expect to earn


Determine how much compensation (return) you expect to earn and how long will it take to pay back the return on this investment. Use the financial formulas, Net Present Value (NPV), Internal Rate of Return (IRR), and Payback.

Initial investment: $5,000

Time Period: 25 years

Cash Flow: $18,720 year expected to earn part-time a year

Discount rate: 4%

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Financial Management: Determine how much compensation return you expect to earn
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