ii.iii.Calculate the equivalent level effective rate of return over the four year-period.If RM7500 is invested in the year 2016, under the same interest environment, calculatethe return of investment in the year 2020. Consider the return of investment as given in the following table:Year20162017201820192020Amount (RM)500051755394.945705.156047.46

Year Balance Return 2016 5000.00 2017 5175.00 3.5% 2018 5394.94 4.25% 2019 5705.15…

Answered: ii. iii. Calculate the equivalent level…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A firm is considering the following independent projects. Project Investment Present value offuture cash flows NPV A $130 $176 $46 B $103 $115 $12 C $183 $287 $104 D $161 $199 $38 E $184 $273 $89 What is the Profitability Index of Project B? Question 5Answer a. 0.85 b. 1.12 c. 0.89 d. 1.18
Calculate the HPR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Period Cashflow 0 -14100 1 3300 2 3300 3 3100 4 2800
16. You are considering an investment with the following cash flows: Year Cash Flow 0 -$50,000 1 $ 7,000 2 $ 4,000 3 $9,000 4 $61,000 What is the internal rate of return (IRR) for this investment? SHOW WORK
Projection of yearl cashflow Year Cashflow($) 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?
A company is considering an investment where the estimated cash flows are as follows: Year Cash Flow 0 (100000) 1 60000 2 80000 3 40000 4 30000 The company cost of capital is 13%. What is the NPV? 51800 61871 56800 122000 51000
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 2800
Consider cash flows Year 0: -6900 Y1: 1700 Y2: 2900 Y3: 2900 Y4: 3500 What is the profitability index for this project if the return is 10%
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a project with a profitability index of 1.156 also has net cash flows with a present value of $83232. the projects internal rate of return was 10%. the initial investment was a $96216 b $72000 c $74909 d $79200
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Determine the WACC, and determine whether the company generated value or not, and what the amount was for both years ANSWER 2020 2021 WACC EVA ROIC

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ii. iii. Calculate the equivalent level effective rate of return over the four year-period. If RM7500 is invested in the year 2016, under the same interest environment, calculate the return of investment in the year 2020.