Compute the payback perlod for an Investment with the following net cash flows. (Round your answer to one decimal place.)Net Cash Flowsper YearCumulative NetCash Flows$ (101,000)$ (101,000)(90,900)(70,800)YearInitial investment1.2.3.5.6.Payback period10,10020,10020,10026,64040,10040,100years(50,700)(24,060)16,04056,140

Base year = 4 yearsBase year Cumulative Net cash Flow = 24,060Next year net cash flow = $40,100

Compute the payback period for an Investment with the following net cash flows. (Round your answer to one decimal place.) Net Cash Flows per Year $ (101,000) 10,100 20,100 20,100 26,648 40,100 40,100 Year Initial investment 1. 2. 3. 5. 6. Payback period years Cumulative Net Cash Flows $ (101,000) (90,900) (70,880) (50,700) (24,060) 16,848 56,140

Compute the payback period for an Investment with the following net cash flows. (Round your answer to one decimal place.) Net Cash Flows per Year $ (101,000) 10,100 20,100 20,100 26,648 40,100 40,100 Year Initial investment 1. 2. 3. 5. 6. Payback period years Cumulative Net Cash Flows $ (101,000) (90,900) (70,880) (50,700) (24,060) 16,848 56,140

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Calculate the EAR of the following investment, entered as a percentage (Example: if your answer is 0.145, enter 14.5) Year Number Cashflow 0 -11400 1 3500 2 3000 3 3100 4 2800 Your Answer:
Compute the payback period for an investment with the following net cash flows. (Round your answer to one decimal place.) Net Cash Flows Cumulative Net per Year $ (101,000 ) 10,100 20,100 20,100 26,640 40,100 40,100 Cash Flows $ (101,000) (90,900) (70,800) (50,700) (24,060) 16,040 56,140 Year Initial investment 1. 2. 3. 5. 6. Payback period years
Calculate the internal rates of return of the following investment: Net investment -$1,100 Year 0 Net cash flows +6,500 Year 1 -11,400 Year 2 +6,000 Year 3 Round your answers to the nearest whole number and enter them in ascending order. IRR1: 0% IRR2: % IRR3: %
Calculate the APR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Year Number Cashflow 0 -11000 1 3000 2 3500 3 2900 4 2800
Compute the payback period for an investment with the following net cash flows (Round your answer to one decimal place.) Net Cash Flows per Year $ (115,000) 11,000 21,000 21,000 2. 3. 4. Year 41,000 years Cumulative Net Cash Flows $ (118,000) (105,200) (84,400) (62,000) (37,620) 4,100 45,900
For the investment shown in the following table, calculate the rate of return earned over the unspecified time period. Cash flow during period Beginning-of- period value End-of- period value $370 $42,400 $36,500 The rate of return on the investment is enter your response here%
Compute the rate of return on the following investment. Year Cash Flow 0 1 2 3 4 5 - $8000 0 2600 2600 2600 2600
For the investment shown in the following table, calculate the total return earned over the unspecified time period. Cash flow during period Beginning-of- period value End-of- period value −$10 $3,200 $2,800 The total return on the investment is __%.
A real estate investment has the following expected cash flows: Year Cash Flows 1 $15,000 2 14,000 3 19,000 4 21,000 The discount rate is 6 percent. What is the investment’s present value? Round your answer to 2 decimal places; for example 2345.25.
For each of the investments below, calculate the rate of return earned over the period. Investment Cash Flow During Period - $300 18,000 с 5,000 D 60 E 1,500 (Click on the icon here in order to copy the contents of the data table above into a spreadsheet.) A B The rate of return on Investment A is %. (Round to two decimal places.) Beginning-of-Period End-of-Period Value Value $2,100 160,000 40,000 300 12,000 $700 113,000 45,000 100 13,200
McCann Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $800 2 1,030 3 1,340 4 1,110 a If the discount rate is 10 percent, what is the present value of these cash flows? b What is the present value at 18 and 28 percent?
REQUIRED Calculate the following from the information given below: 4.1.1 Payback Period (expressed in years, months and days). 4.1.2 Accounting Rate of Return on initial investment (expressed to two decimal places). 4.1.3 Internal Rate of Return (expressed to two decimal places) if the net cash inflows are R400 000 per year for five years. Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. INFORMATION VRH Ltd is considering the purchase of Machine X, details of which are provided below: Initial investment Net cash inflows: Year R 0 (1 500 000) 1 480 000 2 600 000 3 380 000 4 272 000 5 360 000 The cost of capital is 12%. Depreciation is calculated using the straight-line method. No scrap value is expected for the machine. Ignore taxes.

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