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If
is invested at
compounded continuously, what is the amount after
years?
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- Net cost of investment is 100,000. Profitability index is 1.3 while cost of capital is 10%. Useful life is 10 years. Use up to two decimal places for the PVF. What is the ARR? A• 42.35% B• 21.17% C• 22.34% D• 30%A person invests Rs 2,00,000 at 6% Rs 50000 at 7% and 25000 at 8% . What is the average return on Investment ?'s current profits are $900,000. These profits are expected to grow indefinitely at a constant annual rate of 2tunity cost of funds is 4 percent, determine the value of the firm:actions: Enter your responses rounded to one decimal place.instant before it pays out current profits as dividends. millione instant after it pays out current profits as dividends.million
- 4. We only have OMR 800,000 to invest. Which do we select based on Weighted average profitability index method ? Project NPV Investment PI A 430,000 500,000 B 241,250 225,000 C 394,250 375,000 D 262,000 575,000If current assets are $100,000 and current liabilities are $42,000, what is the working capital? A. 200 percent B. 50 percent C. 2.0 D. $58,000b1. F = Pert , which assumes continuous compounding, says that the Future value (F) of an amount (P) invested today at an annual rate (r), expressed as a decimal for the time (t), in years is given by the function. Thus if you invested $100 at the annual rate of 5 1/2% for 6 years and 3 months you would get back (at the end of the time), F = $100e(0.055)(6.25) = $100e(0.3438) = $100(1.4102) = $141.02. If you invest $15000 today, what amount does the formula say you will get back if you leave it for 5 years and 3 months in a savings account paying 4 1/2% annually?
- XY Co has development expenditure of $500,000. Its policy is to amortise development expenditure at 2%per annum. Accumulated amortisation brought forward is $20,000. What is the charge in the incomestatement for the year's amortisation?A $10,000B $400C $20,000D $9,600a) An investment has the following cash flows: Time (years) Investment (outflow) Return (inflow) 0 RM1,000 1 RM250 2 RM250 3 RM250 4 RM250 5 RM250 10 RMX i) In order for the investment to return at an effective rate of interest of 9.5% per annum, what is ii) Suppose now that , and is paid at time , what is the effective annual rate of interest earned on this investment, to the nearest one decimal place? b) Aida Kamilia won RM1,000,000 in a contest, to be paid in twenty RM50,000 payments at yearly intervals. The first payment paid at the time of the contest. (Of course, the present value of her winnings is less than RM1,000,000). Aida Kamilia decided to keep each year to spend and deposit the remaining into account earning an annual effective rate of 5%. She chose the value of to be as large as possible so that at the moment of the 20th deposit, the account would have grown to such a size that it would provide Aida Kamilia at least per year in…Interpret this value. Enter your answer for dollar value in whole dollar. For example, an answer of $1.20 million should be entered as 1,200,000, not 1.20. From a base level of $ , each one percent increase in results in a percent in .
- A4 9c We find the following information on NPNG (No-Pain-No-Gain) Inc.: EBIT = $2,000,000Depreciation = $250,000Change in net working capital = $100,000Net capital spending = $300,000 These numbers are projected to increase at the following supernormal rates for the next three years, and 5% after the third year for the foreseeable future: EBIT: 20%Depreciation: 10%Change in net working capital: 15%Net capital spending: 10% The firm’s tax rate is 35%, and it has 1,000,000 outstanding shares and $8,000,000 in debt. We have estimated the WACC to be 15%. c. Calculate the firm’s share price at time 0.Approximately, what is the value of the total Present worth (where Ptotal= PA + PG) if G (arithmetic gradient) =160, n=2 years, A=240 and i= 2.5% per year? Select one: a. 738 b. 511 c. 615 d. 825 not use excelUse the cash flows and competitive spreads shown in the table below. ($ millions) Year 0 Year 1 Year 2 Years 3–10 Investment 190 Production (millions of pounds per year) 0 0 49 89 Spread ($ per pound) 1.04 1.04 1.04 1.04 Net revenues 0 0 50.96 92.56 Production costs 0 0 39.00 39.00 Transport 0 0 0 0 Other costs 0 29 29 29 Cash flow –190 −29 –17.04 24.56 NPV (at r = 6%) = 0 Assume the dividend payout ratio each year is 100%.a. Calculate the year−by−year book and economic profitability for investment in polyzone production. Assume straight−line depreciation over 10 years and a cost of capital of 6%. (Negative answers should be indicated by a minus sign. Leave no cells blank − be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your income answers in millions rounded to 2 decimal places and enter the rate of return as a percent rounded to 2 decimal places.)…