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a) An aspiring entreprenuer is considering purchasing a miniature donut-making machine for $2,300. After accounting...

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Finance

a) An aspiring entreprenuer is considering purchasing a miniature donut-making machine for $2,300. After accounting for production costs, the entrepreneur estimates they can generate $1,000 of free cash flow annually with the machine, which will effectively last forever. What is their rate of return on this investment? b) An investor will permit you purchase their British Consol bond. The bond pays 35 British pounds annually, and these payments will continue forever. If you require an 8 percent annual return to make the investment, what should you pay?

image An aspiring entreprenuer is considering purchasing a miniature donut-making machine for \\( \\$ 2,300 \\). After accounting for production costs, the entrepreneur estimates they can generate \\( \\$ 1,000 \\) of free cash flow annually with the machine, which will effectively last forever. What is their rate of return on this investment? o) An investor will permit you purchase their British Consol bond. The bond pays 35 British pounds annually, and these payments will continue forever. If you require an 8 percent annual return to make the investment, what should you pay

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