e Mon] 2.3 The Time Value of Money Which of the following variables are required to compute the future value of a lump sum? O I, N, FV O PMT, FV, I PMT, FV, N O I, N, PV Save for Later JAN ottv
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![e Mon]
2.3 The Time Value of Money
Which of the following variables are required to compute the future value of a lump sum?
O I, N, FV
O PMT, FV, I
PMT, FV, N
O I, N, PV
Save for Later
JAN
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- Mo5. can you please help me answer the question below, thank you In an NPV calculation, if the net present value of the future cash flows from an investment are less than the invested capital, it is an investment the firm should not make.At what rate will you invest your money if you want it to tripple? 10% 20% 30% cannot be computed with the given information3.1 Determine the values K, L, M, and N in the table. 3.2 Calculate the total present value of the net cash flows of the investment opportunity. 3.3 If the Net Present Value of the investment opportunity is an unfavourable R99 290, what is the initial outlay?
- What are the equivalent annual worth and future worth of the cash flow given in Problem 20.15 ? Assume i = 8% .I. If there is a positive NPV, IRR is higher than the cost of capital.II. If annual net cash inflow is equal to the cost of investment, then, NPV is zero. A• FF B• TF C• TT D• FTQuestion 3.Match the following terms with the appropriate definition.Future ValueTime value of moneyMonetary AssetPresent value of a single amountSimple interestA.Claim to a fixed amount of cash.B.A dollar now is worth more than a dollar later.C.Based on initial investment only.D.Amount today equivalent to a specified future amount.E.Accumulation of an amount with interest.
- Which figure of merit provides an interest rate at which the present value of the future cash flows equals the amount invested? a) NPV b) IRR c) Cap Rate d) DCF Please ensure accuracy and explain your choice2. Future value The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the calculation of a future value. The process for converting present values into future values is called . This process requires knowledge of the values of three of four time-value-of-money variables. Which of the following is not one of these variables? The interest rate (I) that could be earned by deposited funds The trend between the present and future values of an investment The duration of the deposit (N) The present value (PV) of the amount deposited All other things being equal, the numerical difference between a present and a future value corresponds to the amount of interest earned during the deposit or investment period. Each line on the following graph corresponds to an interest rate: 0%, 9%, or 17%. Identify the interest rate that corresponds…Question 12 Which of the following methods does not adjust for the time value of money: A internal rate of return B net present value C profitability index D payback period
- X1 = 810$ X2 = 7% write the complete equations used and substitute the values of the factors to find the final answer. Draw the cash flow diagram.How would an increase in the interest rate or a decrease in the number of periods until the payment is received affect the present value (PV) of a sum of money? Please explain properly. Thank you!The symbol i* represents the interest rate that makes the present worth of the project equal to zero. True or false?