Investment Decisions: Help w/ Questions 3-6 Needed

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SUMMARY

The discussion centers on investment decision-making, specifically addressing questions 3 to 6 related to a financial scenario involving a $50,000 investment, a 17.27% return, and various financial figures including expenses of $125,000, revenues of $200,000 and $300,000, and a selling price of $400,000. The user questions the rationale behind a purchase amount of $510,074.04, labeling it as an unreasonable figure. The conversation emphasizes the importance of clear financial metrics in investment analysis.

PREREQUISITES
  • Understanding of basic investment principles
  • Familiarity with financial metrics such as ROI and revenue projections
  • Knowledge of expense management in investment scenarios
  • Ability to analyze and interpret financial statements
NEXT STEPS
  • Research investment analysis techniques using Excel
  • Learn about calculating Return on Investment (ROI) in various scenarios
  • Explore financial modeling for revenue and expense forecasting
  • Study the implications of purchase price on investment viability
USEFUL FOR

Investors, financial analysts, and anyone involved in making informed investment decisions based on financial metrics and projections.

markuswong
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So far, I have $50,000 for question 1 and 17.27% for question 2. Can someone please help me with question 3 to 6? Thank you!
 

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You are using nice round amounts:
expenses 125,000
revenue 200,000 and 300,000
sell for 400,000

...But start off with purchase of 510,074.04 !

Why is purchase such a silly amount ?
 

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