Assume that in 2018, a copper penny struck at the Philadelphia mint in 1795 was sold for $360,000. What was the rate of return on this investment?
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- Assume that in 2020, a Liberty Seated half dollar issued in 1890 was sold for $197,000. What was the rate of return on this investment?If $13,000 had been invested in a certain investment fund on September 30, 2008, it would have been worth $59,102.69 on September 30, 2018. What interest rate, compounded annually, did this investment earn? (Round your answer to two decimal places.)Suppose that the purchase price of Manhattan in 1626 was recently re-estimated by historians to be $38. Suppose that this money was invested at an annual rate of 5.3% compounded quarterly. What would this investment be worth in 2011? (Round your answer to the nearest billion.)
- In 2007 and 1880 silver dollar sold for $14,007 what was the rate of return on investment? Answer as a decimal fraction to four decimal places. The plant manager of Shenzhen Electronics Company is considering the purchase of new automated assembly equipment. The new equipment will cost $1,400,000. The manager believes that the new investment will result in direct labor savings of $350,000 per year for 10 years. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. What is the payback period on this project? b. What is the net present value, assuming a 10% rate of return? Use the table provided above. Round to the nearest whole dollar. Net present value $fill in the blank 2 c. What else should the manager consider in the analysis?The plant manager of Shenzhen Electronics Company is considering the purchase of new automated assembly equipment. The new equipment will cost $256,000. The manager believes that the new investment will result in direct labor savings of $64,000 per year for 10 years. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. What is the payback period on this project? b. What is the net present value, assuming a 12% rate of return? Use the table provided above. Round to the nearest whole dollar. c. What else should the manager consider in the analysis?
- The management of ProdPharm.inc has decided to increase the production capacity of its factory by purchasing a new production line. This new acquisition will be financed by bank debt. The company consulted several banks to have the interest rate applied for this type of investment. Bank (A) charges an annual nominal rate of 12%. Bank (B) applies a semi-annually capitalized nominal rate of 11.8%. Bank (C) applies a quarterly capitalized nominal rate of 11.6%. Bank (D) applies a monthly compounded nominal rate of 11.5%. What is the rate monthly headcount best for the business? Show all your interest rate equivalence calculations. Keep 6 digits after the decimal point.Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the following cash flows over the next five years: $99,000, $88,000, $92,000. $87,000, and $72,000. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return in Excel. see Appendix C.Consolidated Aluminum is considering the purchase of a new machine that will cost $308,000 and provide the following cash flows over the next five years: $88,000, 92,000, $91,000, $72,000, and $71,000. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return in Excel, see Appendix C.
- Assume a company is going to make an investment of $450,000 in a machine and the following are the cash flows that two different products would bring in years one through four. Which of the two options would you choose based on the payback method?If a copy center is considering the purchase of a new copy machine with an initial investment cost of $148,546 and the center expects an annual net cash flow of $14,877 per year, what is the payback period? Round to the nearest tenth, one decimal place.The plant manager of Shenzhen Electronics Company is considering the purchase of new automated assembly equipment. The new equipment will cost $96,000. The manager believes that the new investment will result in direct labor savings of $32,000 per year for 10 years. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. What is the payback period on this project?fill in the blank 1 years b. What is the net present value, assuming a 10% rate of return? Use the table provided above. Round to the nearest whole dollar. Net present value $fill in the blank 2 c. What else should the manager consider in the…