Based on the values in the Table below, identify the present value of benefits for Year 5 if the rate of return is 0.14. Year 1 2 3 4 5 6 7 Benefits 25000 31200 38500 51000 60100 66000 72000 Multiplier 0.87 0.77 0.68 0.59 Present Value of 21750 24024 26180 30090 Benefits A. 52287 31252 C. 24040 D. 30360 B.
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- Calculate the APR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Year Number Cashflow 0 -11000 1 3000 2 3500 3 2900 4 2800Consider a policy that has benefits and costs that accrue in the following way: Year 0: Benefits = 20; Costs = 40. Year 1: Benefits = 25; Costs = 35. Year 2: Benefits = 50; Costs = 10. If the social discount rate is 6%, the net present value of the policy is Answer. Please report your answer out to at least two digits (e.g., 4.44 or -0.26).Calculate the rate of return (ROR) using the formula: ROR = (Net annual profit/investment)*100 With rate of interest = 10%
- Projection of yearl cashflow Year Cashflow($) 0 (239000.00) 1 3789.00 2 47675.00 3 122097.00 4 407968.00 5 453324.00 Given that the discount rate is 10% What is the projects discounted payback period? Calculate for Net Present Value? Calculate Internal Rate of Return?Wallace Company is considering two projects. Their required rate of return is 10%. Which of the two projects, A or B, is better in terms of internal rate of return?Lipsion Ltd company is thinking about investing in one of two potential new productsfor sale. The projections are as follows: year revenue/ product s revenue/ product v0 (150,000) outlay (150000) outlay1 14000 150002 24000 253333 44000 520004 84000 63333 Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%. Then decide which product should be selected and why ?
- Consider the following analysis of two alternatives, X & Y: YR X Y 0 -200 -1000 1 30 250 2 30 250 3 30 250 4 30 250 5 100 400 The MARR is 10%. Calculate the incremental rate of return in percent to the nearest 0.1 percent. Please explain each stepCalculate the EAR of the following investment, entered as a percentage (Example: if your answer is 0.145, enter 14.5) Year Number Cashflow 0 -11400 1 3500 2 3000 3 3100 4 2800 Your Answer:USE EXCEL TO WORK THIS OUT AND SHOW THE FORMULA! What is the present value of the following future amounts? a. $800 to be received 10 years from now discounted back to the present at 10 percent b. $300 to be received 5 years from now discounted back to the present at 5 percent c. $1,000 to be received 8 years from now discounted back to the present at 3 percent d. $1,000 to be received 8 years from now discounted back to the present at 20 percent
- If the 10 percent present value ordinary annuity factor is 8.5136 and the11 percent PVAF is 7.9633, a PVAF of 8.1234 correlates to an internal rateof return of __________________.470 - 34 you have concluded that the following relationships are possible next year: economic status probability rate of return weak economy .15 -5% static economy .6 5% strong economy .25 15% What is your expected rate of return (E(RI)) for next year? a. 4.25% b 6% c. 6.25% d. 7.75% e. 8%Assume that the net present value of a project is $ 3870 at 10%, and -$1853 at 12%. Use linear interpolation to compute the rate of return correct to the nearest tenth of a percent. A) 11.2% B) 10.8% C) 10.5% D) 11.9% E) 11.4%