You have an investment opportunity that requires an initial investment of $3,600 today and will pay $5,900 in one year. What is the rate of return of this opportunity?
Q: ,what is the NPV of this investment?
A: Net Present Value: It is a measure of profitability and shows the absolute profit or loss made from…
Q: You have been offered an investment that will pay you a lump sum of $30,000 25 years from today,…
A: The question is based on the concept of Annuities and Present value. Annuities are the series of…
Q: Your project will give you a rate of return of 100% over 15 years. Is this a lot or a little? How…
A: Effective Rate is real rate at which investment value will appreciate over a given period. It shows…
Q: You are considering an investment for which you require a rate of return of 8.5 percent. The…
A: Companies have different alternatives to invest their money in, but they should always compare the…
Q: You have an investment opportunity that requires an initial investment of $5,500 today and will pay…
A: The acronym IRR stands for internal rate of return. It shows the actual return wherein the present…
Q: Assume you are investing $10,000 today for a given amount of time at a given interest rate. What…
A: To understand this concept, we need to differentiate between nominal interest rate and real interest…
Q: f you put up $1,250 in a one-year investment and get back $1,350. What rate is this investment…
A: Time period is 1 year Present Value is $1,250 Future Value is $1,350 To Find: Rate on this…
Q: Consider a growing perpetuity that will pay $100 in one year. Each year after that, you will…
A: Given, Payment is $100. Growth of payment is 6% interest rate is 11%.
Q: You have an opportunity to invest $100,000 now in return for $79,600 in one year and $30,300 in two…
A: Given: Year Particulars Amount 0 Initial investment -$100,000 1 Cash inflows $79,600 2 Cash…
Q: An investment will pay $2,445 two years from now, $3,433 four years from now, and $1,611 five years…
A: Present value is also known as a present discounted value, in which the future value of cash inflows…
Q: You have been offered a unique investment opportunity. If you invest $9,500 today, you will receive…
A: Given: Initial investment = $9,500 Cash in flow in year 1 = $475 Cash in flow in year 2 = $1,425…
Q: You have the opportunity to make an investment that costs $1.000,000. If you make this investment…
A: YEAR CASH FLOW 0 $ (1,000,000.00) 1 $…
Q: You are looking at an investment that will pay you $22,995 in year 2, $43,270 in year 4 and $41,525…
A: The present worth of the investment will include the discounted value of all single payment which…
Q: An investment has a cost of $3500. The investment will have a payout at the end of the first year.…
A: Approach: Let's assume the desired minimum payout is P.We will roll out the yearly payout…
Q: You have the opportunity to make an investment that costs $1.000,000. If you make this investment…
A: The net present value of the investment can be calculated with the help of discount rate. If the…
Q: Your firm has a potential project that will cost $5,000 now to begin. The project will then generate…
A: NPV means PV of net benefit arises from the future. It can be simple calculated by taking difference…
Q: You have been offered a unique investment opportunity. If you invest $9,400 today, you will receive…
A: NPV = sum of all PVs. PV = cash flow in a year * PVIF where PVIF is the present value interest…
Q: What is the internal rate of return (IRR) of an investment that requires an initial investmen of…
A: Internal Rate of return is the rate at which the Net Present Value of the investment is zero. It can…
Q: What is the internal rate of return (IRR) of a project that costs $20,070 if it is expected to…
A: Internal rate of return is the return at which the present value of the project is zero. In other…
Q: You have an opportunity to invest $106,000 now in return for $79,300 in one year and $29,100 in…
A: Data given: Initial Investment ($) = 106,000 Cash flow(Year 1) = $ 79300 Cash flow (Year 2) = $…
Q: You have an investment opportunity that requires an initial investment of $5,000 today and will pay…
A: The rate of return is the rate at which the amount is invested or the investor will receive the…
Q: A company is considering an investment expected to yield $70,000 after six years. If this company…
A: Present value: It can be defined as today’s value of the sum of money that will be received by the…
Q: A 10-year investment will pay $2,500 at the end of this year, and the payments will grow at a rate…
A: Answer: Given data, Future value = $2,500 Required rate of return = 15% Paymets grow @ 5% per year
Q: You are considering a one-year investment. If you put up $1,250, you will get back $1,350. What rate…
A: Here, Present Value of Investment (PV) is $1,250 Future Value of Investment (FV) is $1,350 Time…
Q: You are evaluating a project that will cost $502,000, but is expected to produce cash flows of…
A: 1. Pay back period is the length of time required to recover the cost of Investment. It is…
Q: You have an opportunity to invest $100,000 now in return for $80,000 in one year and $30,000 in…
A: The NPV is calculated as present value of cash inflows less initial investment
Q: You have an opportunity to invest $106,000 now in return for $80,100 in one yoar and $30.400 in two…
A:
Q: An example of how to calculate net present value is done using the following. Imagine you have been…
A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…
Q: You have an opportunity to invest in a FinTech start up. You will have to make two annual payments -…
A: Expected annual return or IRR indicates the anticipated compound annual rate of return earned on an…
Q: How much time will it take you to accumulate $500,000, assuming you invest $15,000 today and $150 /…
A: The time value of money concept states that the value of a certain amount of money on the future…
Q: You have the opportunity to make an investment that costs $1.000,000. If you make this investment…
A: Excel Spreadsheet:
Q: If you invest $73,300 in a project which yields an annual return of $13,500, how many years will it…
A: Given, Amount of investment is $73,300 Annual return $13,500. Rate of interest is 4.5%.
Q: EAR of 5% per year for any horizon, can you make the decision by simply comparing this EAR with the…
A: Given, Value of Investment today = $1,080 Investment today and will pay two years from…
Q: You are considering an investment of $ 1500 annually. The first payment is made now and the last…
A: Given: Annual investment = $1,500 Interest rate = 3% Periods = 4
Q: If you insulate your office for $12,000, you will save $1,200 a year in heating expenses. These…
A: Net present value is the excess of the present value of cash inflows over the present value of cash…
Q: If you put up GHC1,250 in a one-year investment and get back GHC1,350. What rate is this investment…
A: Investment is referred as an asset that are invested or acquired for building the wealth as well as…
Q: If you insulate your office for $19,000, you will save $1,900 a year in heating expenses. These…
A: a.Initial Investment = $19,000Saving in heating expense = $1,900 Calculation of NPV of the…
Q: If you insulate your office for $18,000, you will save $1,800 a year in heating expenses. These…
A: Formula: NPV = Present values of cash inflows - Present values of cash outflows. Deduction of…
Q: You have an opportunity to invest $110,000 now in return for $79,400 in one year and S29,500 in two…
A: In capital budgeting, the investment appraisal process involves the evaluation of an investment's…
Q: You have an opportunity to invest $50,600 now in return for $60,800 in one year. If your cost of…
A: Net Present Value(NPV) is one of the modern techniques of capital budgeting which considers the time…
Q: Kant Miss Company is promising its investors that it will double their money every 4 years. What…
A: The question is not clear on which methods to use, hence have used both 72 and time value equation…
Q: You have the opportunity to make an investment that costs $1.000,000. If you make this investment…
A: If an investment is able to cover the cost then we say that the investment should be accepted. But…
Q: You are considering a safe investment opportunity that requires a $710 investment today, and will…
A: Minimum acceptable rate of return It is the lowest rate of return which a project must be…
Q: You are looking into an investment that will pay you $12,000 per year for the next 10 years. If you…
A: Annuity refers to a series of regular payments made for a defined period. Ordinary annuity means…
Q: You have an opportunity to invest $102,000 now in return for $80,300 in one year and $29,400 in two…
A: Given Information : Amount invested = $102,000 Return in first year = $80,300 Return in second year…
Q: an investment will pay $2,445 two years from now, $3,433 four years from now, and $1,611 five years…
A: The present value of an investment is affected by the inflation rate and growth rate for a specified…
Q: What is the most you would pay for this investment if you require a 10% return? answer in dollars…
A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
Q: Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years.…
A: Initial cost (C) = $100000 Annual cashflow (A) = $25000 n = 5 years r = 9% Let IRR = i
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- You have an investment opportunity that requires an initial investment of $5,000 today and will pay $6,000 in one year. What is the rate of return of this opportunity? The rate of return for this opportunity is ____%.You have an investment opportunity that requires an initial investment of $5,500 today and will pay $11,500 in one year. What is the IRR of this opportunity?You have an investment opportunity that requires an initial investment of $5,000 today and will pay $6,000 in one year. What is the IRR of this opportunity?
- Suppose you invest $2,000 today and receive $11,000 in five years. a. What is the internal rate of return (IRR) of this opportunity? b. Suppose another investment opportunity also requires $2,000 upfront, but pays an equal amount at the end of each year for the next five years. If this investment has the same IRR as the first one, what is the amount you will receive each year?Suppose you invest $3,000 today and receive $10,000 in 25 years. a. What is the internal rate of return (IRR) of this opportunity? b. Suppose another investment opportunity also requires $3,000 upfront, but pays an equal amount at the end of each year for the next 25 years. If this investment has the same IRR as the first one, what is the amount you will receive each year? a. What is the internal rate of return (IRR) of this opportunity? The IRR of this opportunity is%. (Round to two decimal places.) b. Suppose another investment opportunity also requires $3,000 upfront, but pays an equal amount at the end of each year for the next 25 years. If this investment has the same IRR as the first one, what is the amount you will receive each year? The periodic payment that gives the same IRR is $ (Round to the nearest cent.)You are looking at an investment that will pay you $22,995 in year 2, $43,270 in year 4 and $41,525 in year 6. If your required return is 8.73%, what is the most you should pay for the investment? (In other words, how much is the project worth today?)
- You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1,500 two years from now, and $10,000 ten years from now. a. What is the NPV of the investment opportunity if the interest rate is 8% per year? Should you take the opportunity? b. What is the NPV of the investment opportunity if the interest rate is 4% per year? Should you take the opportunity? a. What is the NPV of the investment opportunity if the interest rate is 8% per year? The NPV of the investment opportunity if the interest rate is 8% per year is $. (Round to the nearest dollar.) Should you take the investment opportunity (Select the best choice below.) A. Reject it because the NPV is less than 0. B. Take it because the NPV is equal to or greater than 0. b. What is the NPV of the investment opportunity if the interest rate is 4% per year? The NPV of the investment opportunity if the interest rate is 4% per year is $ (Round to the nearest dollar.) Should…You have been offered a unique investment opportunity. If you invest $8,800 today, you will receive $440 one year from now, $1,320 two years from now, and $8,800 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 6.6% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.6% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 6.6% per year? If the cost of capital is 6.6% per year, the NPV is $ (Round to the nearest cent.)You have been offered a unique investment opportunity. If you invest $9,500 today, you will receive $475 one year from now, $1,425 two years from now, and $9,500 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 5.2% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 1.2% per year? Should you take it now? C a. What is the NPV of the opportunity if the cost of capital is 5.2% per year? If the cost of capital is 5.2% per year, the NPV is $. (Round to the nearest cent.) Should you take the opportunity? (Select from the drop-down menu.) You take this opportunity. b. What is the NPV of the opportunity if the cost of capital is 1.2% per year? If the cost of capital is 1.2% per year, the NPV is $ Should you take it now? (Select from the drop-down menu.) You take this opportunity at the new cost of capital. (Round to the nearest cent.)
- Consider a project in which you have to invest $15,000 today and you will receive $24847 in one year. What is the internal rate of return (IRR) of this project? The IRR is % (Keep 2 decimal places). Answer:What is the value of an investment opportunity that will pay GH¢5,060 next year, GH¢5,500 the year after and GH¢7,800 in the third year, assuming similar investment has a return of 14.5%?You have been offered a unique investment opportunity. If you invest $8,900 today, you will receive $445 one year from now, $1,335 two years from now, and $8,900 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 6.7% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.7% per year? Should you take it now?