Q: You are looking at an investment that has an effective annual rate of 14 percent. (show answers and…
A: Effective annual rate = 14%
Q: Assume you invested in an asset for two years. The first year you earned a 15% return, and the…
A: Given that;First year return (R1) is 15%Second year return (R2) is -10%
Q: Suppose an initial investment of $100 returns $40 at the end of the first year and $80 at the end of…
A:
Q: over the past 3 years an investment returner( per year)20%,-13%,5%. what is thr annual standard…
A: Given:
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A: The amount which shows the return of the amount invested is known as capital recovery cost. The…
Q: A 2-year investment of $2,000 results in a cash flow of $150 at the end of the first year and…
A: Computation of IRR:
Q: An investment of $100 produces rate of return as follows In year 1: a gain of 10 percent In year 2:…
A: Given:Investment amount=$100Return is as follows:Year 1=+10%Year 2=-5%Year 3 =-8%Year 4=+3%To…
Q: An investment of $20,000 will create a perpetual after-tax cash flow of $2,000. The required rate of…
A: We have the following information: Investment: $20,000 Perpetual After-tax cash flow of: $2,000…
Q: ssume that the amount of initial investment is $350,000 and the scheduled receipts are $250,000 in…
A: Net Present Value is the difference between the present value of cash inflows and cash outflows.
Q: Find the annual percentage yield for an investment at the following rates. (Round your answers to…
A: A. Annual percentage yield (APY)= (1+ r/n)^nt -1 r= Rate of interest e= Exponential function nt=…
Q: What is the payback if an investment’s cost is $45,000 and the after-taxbenefit is $2,000 per year?
A: Investment cost =$45000 After tax benefits = $2000 Payback period formula: Payback period =…
Q: An investment had annual holding period returns of 5%, 12%, and 10% for the last three years. What…
A: The question is based on the concept of Financial Management
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A: a. Calculate the total return on invest as follows: Selling Cost = 5% Total Return = NCF + Increase…
Q: The initial cost of an investment is $65,000 and thecost of capital is 10%. The return is $16,000…
A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…
Q: sent worth of income from an investment that follows an arithmetic gradient was projected to be P…
A: Gradient mean that there is constant growth of annuity by the fixed interval and in this we need to…
Q: earns an annual interest rate of 12 percent compounded Semi annually. What is the effective annual…
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: Suppose a firm estimates its overall cost of capital for the coming year to be10%. What might be…
A: In the event that the total computation of an organization's Weighted Average Cost of Capital was 10…
Q: If the investment amounting to 45,000 earned an interest of 3,500 how much will be the maturity…
A: Maturity Value is the Value which an investor will receive at the end of tenure of the Investment.…
Q: If the Nominal (APR) rate of return for an investment is 10.15% compounded quarterly, what is the…
A: The effective rate of return refers to the return rate in multi-period compounding. It determines…
Q: By comparing their APYS, decide which is better: an investment at 4.26% compounded monthly, an…
A: Answer: Calculation of APY: When ‘r’ is 4.26% compounded monthly,
Q: An investment will provide after-tax revenue of $22,336 per year for 7 years. What is the present…
A: After tax revenue (P) of $22,336 for a period (n) of 7 years will be received. Present value annuity…
Q: What is the internal rate of return (IRR) of an investment that requires an initial investmen of…
A: Internal Rate of return is the rate at which the Net Present Value of the investment is zero. It can…
Q: Suppose that $2700 is invested in an account with an APR of 3.9% compounded continuously. Determine…
A: Future value = Present value*e^rate*time
Q: An initial investment of £80,000 has an interim return of £30,000 in year 5 and a final return of…
A: The IRR is the discount rate where the cash outflows are equal to the cash inflows and the net…
Q: ) The initial outlay of the investment is €125,000. The income stream is €30,000 in vear 1, €55,000…
A: Net present value(NPV) is the difference between present value of all cash inflows and initial…
Q: How much was initially invested if the value of the investment is at ₱200,000 after 3 and a half…
A: Present Value: It is the present worth of the investment amount, discounted at an interest rate for…
Q: An investment of $8,000 is made at time 0 with returns of $3,500 at the end of each of years 1–4,…
A: present worth formula: pw=-initial investment+present value of future cashflow
Q: To calculate the effective rate of return on an investment, the total compound interest earned in 1…
A: Rate of return is calculated based on the the returns earned on amount invested
Q: The in itial cost of an investment is $65,000 and thecost of capital is I 0%. The return is $ 16,000…
A: Net present value is the difference between the present value of cash flow and initial investment.
Q: What annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years?
A: Future value is the value of assets at a future date given a growth rate. This is used for financial…
Q: An investment had a nominal return of 11.2 percent last year. If the real return on investment was…
A: Given the following information: Nominal return: 11.2% Return on investment or Real return: 7.5%…
Q: I cannot use excel. Answer this question with equations or financial calculator steps please
A: To answer the question, we need to convert annual percentage rate (APR) to effective annual rate…
Q: What is the returnon an investment that costs $1,000 and is soldafter 1 year for $1,060?
A: Given information: Investment cost (purchase price) is $1,000 Sale price is $1,060
Q: A proposed new investment has projected sales of $515,000. Variable costs are 41 percent of sales,…
A: Projected net income can be calculated as projected sales less costs.
Q: What is the annual percentage yield (APY) for money invested at an annual rate of (A) 4.37%…
A: APY (annual percentage yield) is used to estimate the potential gain from an investment or the final…
Q: An investment costs $465 and is expected to produce cash flows of $100 at the endof each of the next…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: The expected profits from a $165,000 investment are $55,000 in Year 1, $80,000 in Year 2, and…
A: Year Cash flows 0 -165000 1 55000 2 80000 3 120000
Q: What is the profitability index of an investment with initial investment of OMR 6600 and net present…
A: Initial Investment = OMR 6600 Net Present Value = OMR 2100 Profitability Index = Present Value of…
Q: What is the net present value of an investment thatcosts $75,000 and has a sa lvage value of…
A: Given information : Initial cost $75,000.00 Salvage value $45,000.00 Annual profit…
Q: An investment provides a 1.25% return quarterly, its effective annual rate is
A: Effective Annual Rate = ( 1 + Rate of Interest)^4 -1
Q: An investment under consideration has a payback of seven years and a cost of $685,000. Assume the…
A: In this we have to calculate annual cash flow and than calculate the net present value.
Q: A $90,000 investment is made. Over a 5-year period, a return of $30,000 occurs at the end of the…
A: Net Present Value is the difference between the present value of cash inflows and cash outflows.
Q: What is the annual percentage yield (APY) for money invested at an annual rate of 5% compounded…
A: Annual Percentage Yield (APY):APY is an effective annual return rate that takes compounding…
Q: Consider the following investment alternatives: Investment Rate Compounding A 6.502% Annual Daily…
A: The real interest that an investor earns on the investment and a borrower pays on the loan after…
Q: The present worth of income from an investment that follows an arithmetic gradient is projected to…
A: The cash flows occurring in consecutive interest periods may not be of the same amount but they…
Q: If an investment of $2,000 grew to $2,520 in three periods, what is the interest rate at which the…
A:
Q: Find the annual percentage yield for an investment at the following rates. (Round your answers to…
A: b)Calculation of annual percentage yield at 9% compounded continuouslyNote: Use the scientific…
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- Suppose a firm estimates its overall cost of capital for the coming year to be 10%. What might be reasonable costs of capital for average-risk, high-risk, and low-risk projects?Towson Industries is considering an investment of $256,950 that is expected to generate returns of $90,000 per year for each of the next four years. What Is the Investments internal rate of return?If a $31,000 investment grew to $43,005 in 6 1/2 years of quarterly compounding, what effective rate of return was the investment earning?
- The present value of the net cash flows for Product A is $65,145 while the cost of the initial investment is $38,560. The profitability index isIf the Nominal (APR) rate of return for an investment is 10.15% compounded quarterly, what is the Effective Annual Rate of return (EAR or EFF)?An investment costs $23,958 and will generate cash flow of $6,000 annually for five years. The firm’s cost of capital is 10 percent. a.) What is the investment’s internal rate of return? Based on the internalrate of return, should the firm make the investment? b.) What is the investment’s net present value? Based on the net presentvalue, should the firm make the investment?
- What is the profitability index for an investment with the following cash flows given a 20 percent required return? Year Cash Flow 0 -$21,000.00 1 $7,200.00 2 $9,300.00 3 $8,500.00An investment of $70,000 yields a net annual income of $15,000 for 6 years. What is the internal rate of return (IRR) for this investment?A 2-year investment of $2,000 results in a cash flow of $150 at the end of the first year and another cash flow of $150 at the end of the second year, in addition to the return of the original investment. What is the internal rate of return on the investment?
- If an investment of $2,000 grew to $2,520 in three periods, what is the interest rate at which the investment grew? Solve using both present and future value tables.If An investment costs $23,958 and will generate cash flow of $6,000 annually for five years. The firm's cost of capital is 10 percent? a. What is the investment's internal rate return? Based on the net present rate return, should the firm makeinvestment? b.What is the investment's net present value? Based on the net present value, should the firm make the investment?You are looking at an investment that has an effective annual rate of 14 percent. (show answers and excel formula equations) a. What is the effective semiannual return? b. What is the effective quarterly return? c. What is the effective monthly return?