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- Suppose that annual income from a rental property is expected to start at $1,270 per year and decrease at a uniform amount of $40 each year after the first year for the 16-year expected life of the property. The investment cost is $8,200, and i is 7% per year. Is this a good investment? Assume that the investment occurs at time zero (now) and that the annual income is first received at EOY one. Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. The present equivalent of the rental income equals $|. (Round to the nearest dollar.)Suppose that annual income from a rental property is expected to start at $1,330 per year and decrease at a uniform amount of $40 each year after the first year for the 15-year expected life of the property. The investment cost is $7,000, and i is 7% per year. Is this a good investment? Assume that the investment occurs at time zero (now) and that the annual income is first received at EOY one. Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. The present equivalent of the rental income equals $. (Round to the nearest dollar.) Is this a good investment? Choose the correct answer below. Yes No10.An engineer who was contemplating retirement had $1.6 million in his investment portfolio. However, a severe recession caused his portfolio to decrease to only 55% of the original amount, so he kept working. If he was able to invest his money at a rate of return of 9% per year after the recession ended, how many years did it take for his account to get back to the $1.6 million value?
- How much should be put in an investment with a 4% effective annualrate today to have $20,000 in five years?Suppose $100 is invested today in a project that returns $330 in 6 years. Calculate the IRR of this investment.Suppose that annual income from a rental property is expected to start at$1,100 per year and decrease at a uniform amount of $50 each year after the first year for the 14-year expected life of the property. The investment cost is$8,600,and i is 7% per year. Is this a good investment? Assume that the investment occurs at time zero (now) and that the annual income is first received at EOY one. The present equivalent of the rental income equals $ . (Round to the nearest dollar
- A labor saving device system save $2,000 per year for five (5) years. It can be installed at a cost of $8,000. The rate of return on this planned investment is most nearly: a. = 12.36% b. = 9.36% c. 10% d. i = 8%Shenli would like to plan for retirement. With the help of a financial planner, she estimates that she will need $2,400,000 when she retires 40 years from now. Assume her investments produce returns of 12% per year. How much would Shenli need to save each year if she makes equal end of year deposits for the next 40 years that she works? Click here to access the TVM Factor Table calculator. Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is +5.Suppose that annual income from a rental property is expected to start at $1,300 per year and decrease at a uniform amount of $50 each year after the first year for the 15-year expected life of the property. The investment cost is $8,000, and i is 9% per year. Is this a good investment? Assume that the investment occurs at time zero (now) and that the annual income is first received at EOY one.
- A bond with a face value of $10,000 pays interest of 8% per year. This bond will be redeemed at its face value at the end of ten years. How much should be paid now for this bond when the first interest payment is payable one year from now and a 9% yield is desired?A small company wishes to set up a fund that can be used for technology purchases over the next 6 years. Their forecast is for $16,000 to be needed at the end of year 1, decreasing by $2,000 each year thereafter. The fund earns 9% per year. How much money must be deposited to the fund at the end of year 0 to just deplete the fund after the last withdrawal?Example: Series and Random Amounts Akramin plans to have RM 100 000, ten years from now, which the rate of return given is 10%. Analyse the alternatives to achieve above target through: 1. Deposit required now (present worth P7 in year 0) 2. Yearly deposit if he start to invest now. 3. Yearly deposit if he start to invest 5 years from now. 4. Yearly deposit if he plan only to invest from now for 5 years.