3. Suppose that this fund has a midyear cash inflow of $ 20 million rather than an outflow. Would this reduce or increase the time weighted rate of return

Q: An investment project has annual cash inflows of $4,000, $4,900, $6,100, and $5,300, for the next…

A: Capital budgeting decisions are taken by evaluating multiple projects and selecting the best out of…

Q: An investment project has annual cash inflows of $4,100, $5,000, $6,200, and $5,400, for the next…

A: To Find: Discounted payback period

Q: You can expect annual benefit of $15,800 if you deposit $142,200 in a bank account right now. The…

A: Pay back period is the period required to recover the initial cost of the project.

Q: Park Co. is considering an investment that requires immediate payment of $27,000 and provides…

A: Investment refers to the sum amount of money or payment made in order to acquire some form 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: An Investment project has annual cash inflows of $4,500, $3,800, $5,000, and $4,200, for the next…

A: The Payback period of the company is providing information as in what period the amount of initial…

Q: An investment project has annual cash inflows of $4,000, $4,900, $6,100, and $5,300, for the next…

A: Discounted Payback Period = Years before full recovery + (unrecovered cost at the start of the year/…

Q: A scries of cash flows begin at $15,000 the first year and steadily increasc over the next few years…

A: "Hi, Thanks for the Question. since you asked multiple question, we will answer the first question…

Q: Your RRSP savings of $25,000 are converted to a RRIF at 5.25% compounded monthly that pays $5,300 at…

A: Rate = 5.25% Monthly rate (I/Y)                        = 5.25/12 = 0.437500  Amount available (PV)…

Q: The treasurer of Tropical Fruits, Inc., has projected the cash flows of Projects A, B, and C as…

A: Hi, since there are multiple questions posted, we will answer first three question. If you want any…

Q: mpany estimates that it will need $66,000 in 7 years to replace a computer. If it establishes a…

A: A sinking fund is an account in which the amount is deposited after the regular period by setting…

Q: What is the present value of a perpetual stream of cash flows that pays $5, 000 at the end of year…

A: Cashflows = $5,000 Growth rate = 4%  Discount rate = 11%

Q: You invest 2000 into a fund at time 0 and an additional 1000 at time 1. The investment period is 2…

A: As we know, Future value : It is the value of an investment or asset in the future on a specific…

Q: Ipswich Corporation is considering an investment opportunity with the expected net cash inflows of…

A: The net present value is present value of cash inflow less initial investment

Q: Quarterly deposits of $1,000 are made at t = 1, 2, 3, 4, 5, 6, and 7. Then, with drawals of size A…

A: The Future value of $1000 quarterly deposits at the end of the 7th quarter equals :…

Q: An investment project has annual cash inflows of $5,000, $5,500, $6,000, and $7,000, and a discount…

A: Initial cost (CF0) = $8000 CF1 = $5000 CF2 = $5500 CF3 = $6000 CF4 = $7000 r = 11%

Q: An investment project has annual cash inflows of $5,000, $5,500, $6,000, and $7,000, and a discount…

A: Discounted Payback Period (DPP) = Previous year DPP Occurs + Cumulative Cash flow till…

Q: What is the present value of a perpetual stream of cash flows that pays $2,500 at the end of year…

A: Perpetuity is a stream of identical cash flows with no end. It is a type of payment that is both…

Q: A project has an initial cost of $8,500 and produces cash inflows of $2,700, $4,800, and $1,600 over…

A: The discounted payback period calculates the time taken for the project to return the initial…

Q: If P50 was invested at 6% on January 1, year 1, what equal year-end withdrawals(P) could be made…

A: Invested amount (PV) = P 50 Annual interest rate (R) = 6% Number of withdrawals (N) = 10 Annual…

Q: What is the present value of a perpetual stream of cash flows that pays $5, 000 at the end of year…

A: Perpetuity is a stream of identical cash flows with no end. It is a type of payment that is both…

Q: An investment project has annual cash inflows of $3,50o, $4,400, $5,600, and $4,800, for the next…

A: Therefore, the Discount payback period is 1.92 years.

Q: Lannie Industries is planning its operations for next year. Lannie Bells, the CEO, wants you to…

A: Changes in sales = Last year’s sale * Sales growth rate   = 350 * 30% = 105   Current year sales =…

Q: The white oak company's annual sales are 219 million van average of 9 days elapses between when a…

A: GIVEN   The white oak company's annual sales are 219 million van average of 9 days elapses between…

Q: A mail order business will generate cash flows of $9,000 at the end of each of the next 3 years,…

A:

Q: If $90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of $23,138.32…

A: solution: Let interest rate earned = i Annual withdrawls = $23,138.32 Amount invested (Present value…

Q: Lannie Industries is planning its operations for next year. Lannie Bells, the CEO, wants you to…

A: SOLUTION- FORECASTED SALES = LAST YEAR SALES * SALES GROWTH RATE .…

Q: A company expects to receive the following cash flows $2,000 for the first ten years and then $3,000…

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

Q: An investment project has annual cash inflows of $2,800, $3,700, $: for the next four years,…

A: The payback period method is a very important technique used in capital budgeting for assessing…

Q: Your company estimates it will have to replace a piece of requirement at a cost of $800,000 in 5…

A: Sinking fund is a dedicated fund set to fund a future liability by depositing small amounts…

Q: f $14,000 had been invested in the Fictious Fund on June 30, 1995, then on June 30, 2005 the…

A: Compound Interest is calculated by multiplying the initial principal amount by one plus the annual…

Q: Find the IRR for an investment

A: IRR or internal rate of return of an investment can be defined as the discount rate at which the net…

Q: An investment requires an initial disbursement of €2,500,000 and the duration of the project is 3…

A: Capital budgeting indicates the evaluation of the profitability of possible investments and projects…

Q: What is the present value of end-of-year cash flows of 1000 per year, with the first cash flow…

A: Present value is the sum of discounted future cashflow

Q: If 14000 had been invested in the fictious fund on June 30,1995 the investment would have been worth…

A: Discounting the future value provides the present value.

Q: What is the present value of end-of-year cashflows of $1,000 per year, with the first cashflow…

A: Present value is the value today of future cash flows discounted to present terms using a specified…

Q: Second Hand Software needs to accumulate $12,000 in 3 years to meet future needs. What sinking fund…

A: Sinking fund is defined as the method of the funds repayment, which borrows by the bond issue by the…