10. You have been offered a project paying P1,000 at the beginning of each year for the next 10 years. What is the maximum amount of money you have invest in this project if you expect 9 percent rate of return to your investment?

Q: Approximately how many years must one wait for an initial investment of $10,000 to triple in its…

A: Using NPER function in Excel.

Q: 2. Calculating Payback An investment project provides cash inflows of $865 per year for eight years.…

A: Annual cash inflow = $865

Q: If you invest $5,000 three years from now, how much will be in h 15 f if 10% d d ll ? the account 15…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: Suppose you estimate that the effective rate of return (EAR) you can generate from your investment…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: In one year, a project will be worth $10,000. What is that project worth today assuming a discount…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: A Company project of 10 years, Paying 2,000,000 a year with a 4% growth each year, at the end it…

A: Calculation of Present Value:To calculate the present value, first we need to calculate the present…

Q: Question: A project pays $2000 today, costs $5000 a year from now, and pays $12, 500 in two years.…

A: Here, Cash inflow in year 0 is $2,000 Cash Outflow in Year 1 is $5,000 Cash Inflow in Year 2 is…

Q: 3. An investment offers P4,900 per year for 15 years, with the first payment occurring one year…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

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: A company has an investment project that would cost $10 million today and yield a payoff of $15…

A: If present value of future value is more than initial investment than investment is accepted.

Q: How much should be put in an investment with a 10% effective annual rate today to have P10,000 in…

A: The future value of a cash flow is the future worth of a cash flow at a certain arte of interest for…

Q: .If you invest $10,000 now into a project that will yield net revenues of $1.327 at the end of each…

A: Internal rate of return (IRR) refers to the discount rate that is associated with an investment's…

Q: What is the present value of receiving $4,000 per year for 10 years? Your annual required rate of…

A: It can be calculated using PV formula in excel PV (rate, nper, pmt, [Fv], [type]) Rate The interest…

Q: You are valuing an investment that will pay you $25,000 per year for the first 7 years, $29,000 per…

A: Annual discount  rate is 13% Amount paid for first 7 years is $25,000 Amount paid for next 12 years…

Q: 11. If you would like to have $500,000 set aside in 40 years, assuming a 4% annual rate of return,…

A: Formula to be used:  FV of annuity=P1+rn-1rWhere,FV = $500,000r=0.0412=0.003333n= 40yr×12=480

Q: What is the simple annual rate of return on a $10,000, 3-year investment with cash inflows of $2,000…

A: The simple annual rate of return is calculated by dividing the annual cash flow by the initial…

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:…

Q: D&G Corp.has been offered a project paying 50,000₺ at the end of each year for the next 10 years.…

A: maximum amount investment is present value annual payment.

Q: 5.Milen is considering an investment of $150,000. The useful life of the project is 15 years. The…

A: Formula: 1. PV Factor= 11+rn Where,  r is rate of return n is number of period 2. NPV= Rt1+it where,…

Q: Find the rate of return (IRR) on a project that will cost $200,000 today and $400,000 in 4 years…

A: Concept . Internal rate of return is method of calculating investment's rate of return.

Q: 6.if a project requires an initial current investment of £100 and promises to raise £121 after one…

A: Net present value (NPV) is a capital budgeting technique that helps in evaluating various…

Q: Whichoption is better: receive $160,000 now or $50,000, $25,000, $55,000, $30,000, and…

A: If Present value of Cash inflows is more than present value of cash outflows net present value is…

Q: If you invest $15,000 every year and expect to increase your investment by 6% each year for the next…

A: This is a growing annuity and we have to find the present value of a growing annuity.

Q: Solve the question: You have been offered a project paying $300 at the beginning of each year for…

A: Given Information: Payment Per year(PMT) is $300 Expected rate of return is 9% Time Period is 20…

Q: Consider two investment projects, both of which require an upfront investment of $10 million and pay…

A: Capital budgeting is the process by which a corporation examines potential large projects or…

Q: evaluating a project that will cost $541,000​, but is expected to produce cash flows of $129,000 per…

A: NPV= Present value of cashinflows - Present value of cashoutflows.

Q: 1. Calculate the present value of $90,000 to be received 14 years from now it the decision makers'…

A: Principal amount invested now will become certain amount after certain period of time at specific…

Q: You are considering a project with an initial cash outlay of $100,000 and expected free cash flows…

A: Payback period = Initial cash outlay / free cashflow NPV = present value of future cashflow -…

Q: A project will have an initial investment requirement of $5,000. Then, it will generate 5 years of…

A: Given:

Q: A firm is considering a six-year project with a payback period of 3.5 years. It has cash flows the…

A: Payback period means the period when the project is able to recover its initial investment without…

Q: If you invest $131,300 in a project which yields an annual return of $25,400, how many years will it…

A: Discounted payback period The discounted payback period is the period taken for the initial…

Q: If you invest $12,000 today , how much will you have: a) In 6 years at 7 percent? b) In 15 years…

A: Investment amount = $12,000 Time period = 6 years  Rate of interest = 7% In this, the future value…

Q: You have been offered a project paying $300 at the beginning of each year for the next 20 years.…

A: Annual payment (P) = $300 Interest rate (r) = 9% Period (n) = 20 Years

Q: You are considering a project which will cost $140,000.  It is expected to bring in incomes of…

A: Initial cost = $140,000 Annual income (C) = $45,000 Period (n) = 5 Years Discount rate (r) = 0.12…

Q: How much would you have to invest today to receive a. $15,000 in 8 years at 10 percent? b. $20,000…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: 9) A project has an initial cost of $65,000, expected net cash inflows of $11,000 per year for 9…

A: Payback period: It is the duration within which the initial cost of a project is recovered.

Q: You are considering investing $15,000 in a project today. This project will generate $6,500 per year…

A: Net present value calculation is one of the technique of capital budgeting, under which present…

Q: If you invest $10,000 at 10% for 10 years, what is the investment worth after 10 years?

A: The formula to calculate future value is provided below:

Q: If you invest $131,300 in a project which yields an annual return of $25,400, how many years will it…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: For a major plant expansion project, a company wants to have $63 million 5 years from now If the…

A: Solution: Money is invested somewhere to earn interest on it. The amount initially deposited in…

Q: If you invest $9500 per period for the following number of periods,  how much would you have in each…

A: Calculation of Future value of annuity: Answer: Future value annuities are $232,965.77 and…

Q: 4. Project L requires an initial outlay at t = 0 of $61,000, its expected cash inflows are $15,000…

A: The discounted payback period is the time period required by the project to generate enough…

Q: 3) You have been offered a project paying $300 at the beginning of each year for the next 20 years.…

A: Given is the case of an 'Annuity due' where equal payments are made over  certain periods where each…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.