Suppose you make a $5,000 investment that will return $3,000 in year 2 and another $3,500 in year 4, With an interest rat of 4.5%int is the NPVof ths project?
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A: Given Data: Discount Rate = 6% Intial Investment 7000 Cash FLow : Year 1 2000 Year 2 2500…
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Q: Johnson Controls has a project with a cost of $7,000 and expected cash flow of stream of $2,000 at…
A: Net Present Value of the project = Present Value of Future Cashflows - Initial Cost of Project…
Q: Assuming you are facing making a decision on a large capital investment proposal. the capital…
A: To find the answers, we will first have organize the cashflows associated with the project. Please…
Q: Allison was evaluating the feasibility of a project that has an initial investment of $215,000 and…
A: Initial investment = $ 215000 Additional investment in year 1 and year 2 = $ 160,000 Annual cost…
Q: There is a project that requires an investment of 20 thousand usd and its expected benefit is 7,500…
A: Internal rate of return: The internal rate of return is the rate at which the net present value of…
Q: You invest $12,650 in a project today. You expect to receive cash flows $3,200, $5,160, $4,288,…
A: Discounted payback period is calculated as number of years required for a project to recover the…
Q: A project requires a $2 million investment in net working capital (NWC) today, and will be fully…
A: Present value refers to value today. Present value is an important concept in which different cash…
Q: An equipment with a cost of P 100 000 is expected to generate returns of P 90 000; P 60 000 and P 50…
A: Discount rate = 12% Equipment cost = P100,000 Return in year 1 = P90,000 Return in year 2 = P60,000…
Q: Suppose a project with a 6% discount rate yields R5000 for the next three years. Annual operating…
A: NPV is the first priority rule.
Q: Consider a project that requires a $10 000 cash outlay and provides $5000 after one year and $7000…
A: NPV and profitability index are capital budgeting techniques, which are used to compare the net…
Q: Cooper Industries is considering a project that would require an initial investment of P235,000. The…
A: Discount factor = initial investment / Annual cost savings = P235,000/P70,110 = 3.352
Q: Smoot Automotive has implemented a new project that has an initial cost, and then generates inflows…
A: Annual Inflow = 10000 N = 7 Payback period = 4 Initial Outflow = Inflow * Payback period Initial…
Q: Milen is considering an investment of $150,000. The useful life of the project is 15 years. The cash…
A: Given information: Investment amount is $150,000 Life of the investment is 15 years Cash flow in…
Q: A firm is considering a six-year project with a payback period of 3.5 years. It has cash flows the…
A: Let the initial investment = X Payback period = 3.5 years r = 10% As the cashflows are uneven,…
Q: Calculate the net present value of a project which requires an initial investment of ₱1,000,000 with…
A: Net Present Value (NPV) is one the capital budgeting technique which is used to analyze the…
Q: You are evaluating a project that will cost 5484 000, but is expected to produce cash flows of…
A: The payback is the time it takes the cash inflow from the capital investment project to equal the…
Q: Assume that it costs $1000 to start a project. If the project will give $400 profit in the first…
A: Using Excel functions for calulations
Q: Assume $100,000 is available for investment and MARR =10% per year. If alternative A would earn 25%…
A: Assuming, Investment available = $100000 MARR = 10% Investment = $60000 Return = 25% Return on…
Q: Suppose you are considering a project that will have an initial construction cost today and a final…
A: Computation of Present Value is as follows:
Q: You have been offered an investment opportunity that pays $600 every quarter for nine years and…
A: Current value is the present value of the future payments at a given rate of return. Given:…
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A: Net present value is the technique used in capital budgeting to evaluate the acceptability of the…
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A: Net Present Value(NPV) is amongst one of the modern techniques of capital budgeting which considers…
Q: Assume that it costs $1,000 to start a project. If the project will give $400 profit in the first…
A: Payback period =initial invetsment / Cashflows
Q: XYZ is considering a 3-yr project. The initial outlay is -$120,000, annual cash flow is $50,000 and…
A: Calculation of Net present value (NPV):Answer:Net present value (NPV) is $4,988.13
Q: Suppose you are considering a project that will have an initial construction cost today and a final…
A: profitability index is present value of cash flow divided by initial investment.
Q: Find internal rate of return of a project with an initial cost of $43,000, expected net cash inflows…
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A: Capital budgeting is a process or method of selecting appropriate and most suitable projects or…
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A: The question is related to Capital Budgeting. As per the question we will calculate the pay back…
Q: XYZ is considering a 3-yr project. The initial outlay is -$120,000, annual cash flow is $50,000 and…
A: The NPV can be calculated with the help of present value of all cash flows.
Q: Find internal rate of return of a project with an initial cost of $43,000, expected net cash inflows…
A: Capital budgeting approaches are the techniques that the management of the company adopts to…
Q: NUBD Co. is planning to invest P40,000 in a three-year project. NUBD's expected rate of return is…
A: The present value (PV) factor is used on a future date to calculate the current value of a cash…
Q: The project's payback is 1.5 years, and it has a weighted average cost of capital of 10 percent.…
A: From the payback period, initial cost can be calculated. MIRR is the annual growth rate of future…
Q: A project requires a $3 million investment in net working capital (NWC) today, and will be fully…
A: As per the given information: Investment in net working capital (NWC) - $3 million Recovered fully…
Q: P11-1. What is the project's NPV? P11-2. What is the project's IRR? P11-3. What is the project's…
A: As per my view.... Inflows given in question is 12000 , not 1200 So I give solutions assuming 12000…
Q: NUBD Co. is planning to invest P40,000 in a three-year project. NUBD’s expected rate of return is…
A: The term "present value" refers to the adjustment of the actual amount with the interest rate to…
Q: An investment of $80,000 is expected to generate a net annual income of $27,000 for 5 years. If the…
A: Present worth can be calculated by using this equation Net Present worth = -investment -…
Q: A project that costs $50 million is expected to generate $20 million per year over the next 4 years.…
A: Calculation of Payback Period, Net Present Value, Internal Rate of Return and Modified Internal Rate…
Q: An investor is considering a project which requires an outlay of 3 million pounds initially (t = 0),…
A: Internal rate of return (IRR) is a metric used by corporations to determine the rate of return on…
Q: Assume that it costs $1000 to start a project. If the project will give $400 profit in the first…
A: Pay back period: Number of years required to payback amount invested in a project.…
Q: Cooper Industries is considering a project that would require an initial investment of P235,000. The…
A: Solution: Initial investment = P235,000 Annual cost savings = P70,110
Q: XYZ is considering a project that would last for 3 years and have a cost of capital of 18.20…
A: Year 0 1 2 3 Revenue $ - $ 12,500.00 $ 10,400.00 $…
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- Assume you invest $15,000 today. How much will you have in six years at an interest rate of 9%? Future Value of $1: 8% 123456 1.080 1.166 1.260 1.360 1.469 1.587 OA. $23.805 OB. $25,155 OC. $26.580 OD. $23,085 9% 1.090 1.188 1.295 1.412 1.539 1.677 10% 1.100 1.210 1.331 1.464 1.611 1.772 MAKED ہےIf you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%
- How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%How much will $30,000 grow to in three years, assuming an interest rate of 11% compounded annually? Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole doller. (EV S3 EVot$3 EVA of 31 and EXA.L.53 Multiple Choice $41029 $51,936 $71,029 $39,900uestion 1: Solve the following TVM problems using Excel formulas. You MUST use Excel formulas (FV or PV) to receive credit. ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? C. Suppose you invest $ 570 monthly. What is the future value of the investment in 29 29 years, if interest at + 5% is compounded monthly? 5 6 7 8 19 20 21 22 23 24 25 26 27 28 29 Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A 国 W X
- What is the total future value ten years from now of $400 received in 1 year, $350 received in 2 years and $900 received in 8 years if the interest rate is 5% per year? O a $2,047.15 O b. $2,100.11 Oc $2,299.15 Od. $2,129.89 O e. $2.254.44Ineed to answerthese questions can you help me out, Questions4,5 4- What is the current value of the following payment sets? A set with a base payment of $ 2000 in the first year, with a 5% annual increase to 10 years and an interest rate of 12% 5- How many years would it take for an investor to increase an initial investment of $3000 to $6939 if i) that investment were compounded annual at 15% per annum? (answer=6 years) ii) an investorto increase an initial investment of $1000 to $7400 if that investmentwere compounded annual at 10% per annum? an investorto increase an initial investment of $5000 to $302100 if i) that investment were compounded annual at 6% per annum? an investorto increase an initial investment of $200 to $2824 if iv) that investment were compounded annual at 12.2% per annum?Q3: An investment promises the following payments: March 3 $1000; March 18 $2000; March 26 $3000. If the market interest rate is 5.16%, what is this investment value on March 28? ___________.What is this investment value on March 18? _____________. If you believe your required return for this investment should be 8.19%, how much are you willing to pay for this investment on March 1? _____________
- What is the present value of $600 you expect to receive in 3 years if the interest rate is 12% compounded annually? Select one: O a. 842.4 O b. 1440 O c. 2024 O d. 427 Next page ge ENG 07:11 INTL 11/07/2021What is the future value in 180 days of $250,000 at 9% p.a. simple interest? Select one: a. $261,095.89 b. $201,905.00 c. $4,300,000 d. $118,000.00Assume you invest $1 000 at the end of this year, at the end of the second year, and at the end of the third year. How much will you have at the end of the fourth year if interest rates are 5% p.a.? Select one: a. $3,405.54 b. $3,310.12 c. $3,215.41 d. $3,100,21