October 31st, 2016, 03:55 AM  #1 
Newbie Joined: Oct 2016 From: Accra Posts: 4 Thanks: 0  financial maths
Possible,Kwaaly and Tycoon have decided to form a limited partnership firm PKT ltd,to pursue a business idea that will be purchased from Ransford Consult.They have agreed to contribute capital in the ratio 3:2:1 respectively.The capital to be contributed by all partners will be used to purchase the business idea and equipment needed to start the business.Possible and Tycoon will contribute $22014.5 and $7338.17 respectively.The business is expects to receive $12000 as cash inflow after the first year,twice the first years amount in the second year as inflow.Third year inflow will be $5000 less than that of the second year and fourth year expected inflow will be the average of the previous year's discounted inflows.Kwaaly's father who live in UK has won a lottery worth $13000.This is to be shared equally among Kwaalys' family members; a family of four.Kwaaly's share approximate a maintenance expenditure that will be incurred by the partnership firm in year three.His parents share is equivalents to repair cost that will be incurred by the firm in a year after the maintenance work is done.The firms discount rate approximates the average growth rate of a $50000 initial investment made by Rita,Tycoon's wife,with NIB that grows by 10%,15% and 17.12% for there years. Required: Is the business worth pursuing? Pls help me in solving it 
October 31st, 2016, 07:20 AM  #2  
Senior Member Joined: May 2016 From: USA Posts: 857 Thanks: 348  Quote:
I have tried to clean up the question so it is legible. However, the question as posed is not clear. If the question was posed in English originally, please give the exact wording. Suggestions. Have you constructed a table of cash flows by year? What discount rate seems to be appropriate?  

Tags 
financial, maths 
Thread Tools  
Display Modes  

Similar Threads  
Thread  Thread Starter  Forum  Replies  Last Post 
Financial Maths Problem  Marko1011  Economics  12  May 6th, 2014 07:08 AM 
Financial maths quiz / competition  tykoh  New Users  5  March 21st, 2013 01:29 PM 
Maths dont know what a number ismaths ends in meaningless  bas  Number Theory  3  March 22nd, 2011 11:26 AM 
Financial Maths  Basic problem  raidenciv  Applied Math  4  September 21st, 2008 06:47 PM 
Financial maths quiz / competition  tykoh  Economics  0  December 31st, 1969 04:00 PM 