[everise2000]

an investor has 2 choices. To purchase a market stall for $60,000 which is expected to generate $14,000 profit per year for 5 years with residual value of $20,000 or purchase a website solution for $30,000 also expected to generate $10,000 for 5 years with no residual value. Calculate the net present value of each option and advise the investor carefully. What would be the minimum resale value after 5 years to convince the retailer to purchase the market stall?

[ArcSine]

The methodology used to arrive at the correct answer can be found within the textbook from which this question is quoted, no? (Hint: Five'll getcha ten it'll be in the chapter immediately preceding the question.)

[morgaine300]

The point being that we aren't here just to do your homework for you. Make an attempt to do your own work first. We can check your answers, or if you get stuck, show us what you've got and where you're stuck. Or ask a specific question. But we're not here to just outright answer it for you.

[indyc]

1070
-------
(1 + Rd)15

but don't know how to find the Rd, so that I can find the Kd

70+1000= 1070

1070
-------
(1 + Kd)15

[ArcSine]

Indyc, looks like you've got the beginnings of a question going on there...

First, always start a new thread for a new question. And when you do, fill out your question with a little more background info, and show where you're stumped. The folks around here'll be glad to help you out.