In 2011, an 1880-O Morgan silver dollar sold for $13,113. Required: What was the rate of return on this investment? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) Rate of return |%
Q: National Co. would like to maintain its cash account at a minimum level of P25,000, but expect the…
A: Minimum level of cash (L) = P 25000 Standard deviation (SD) = P 2000 i = 7.5% per annum = 0.0205479%…
Q: Wells, Inc., has identified an investment project with the following cash flows. Year Cash Flow $…
A: Future Value: To calculate the future value of the current value we have to adjust the current value…
Q: The present worth of a decreasing geometric series is 96157$. The interest rate is 8% per year and…
A: Annuity refers to series of equalized payments that are paid or received at start or ending of…
Q: Consider the following cash flows: Year Cash Flow -$28,600 15,100 13,800 10,200 1 2 3 a. What is the…
A: profitability index is given by present value of cash flow to initial investment. Profitability…
Q: Assume that in 2018. a copper penny struck at the Philadelphia mint in 1793 was sold for $240,000.…
A: Rate of return is the return that an investor expects from the investor made. It is generally…
Q: If $7,000 had been invested in a certain investment fund on September 30, 2008, it would have been…
A: Invested Amount = $7,000 Investment Date = September 30, 2008 Maturity Date = September 30, 2018…
Q: Find the profitability index for Oman Clothing Company if the initial investment is 10700 OMR and…
A: Profitability index is a measure of capital budgeting decision which aims to analyze whether the…
Q: Mendez Company has identified an investment project with the following cash flows. Year Cash Flow 1…
A: Present value of future cash flows can be calculated by using the discounting technique. Discounting…
Q: The present value of the following cash flow stream is $8,650 when discounted at 9.5 percent…
A: Given: Present Value of Cash flow =$8650 Present value of Cash flow =$2250×PVF(9.5%,1 Year)+Cash…
Q: he current yield curve for treasuries is as follows: Maturity (years) YTM 1 0.5% 2 0.9% 3 1.01%…
A: A predetermined exchange rate at which payment will be made or received in the future is term as the…
Q: series, with interest at 10%, find: a. the present worth b. the value at the end of year 6 c. the…
A: Present worth interest rate=10% Present value =P/(1+r)n Present value…
Q: d $100M in an investment whose annual standard deviation is 0.2. Compute the 1% VaR of this position…
A: VaR is value at risk of the company that has arisen due to volatility of the investment.
Q: Suppose that you have $9,000 in a rather risky investment recommended by your financial advisor.…
A: it is given that Investment - $9000 1st yr – -40% Second yr - +50% Financial advisor says there is…
Q: Suppose that the purchase price of Manhattan in 1626 was recently re-estimated by historians to be…
A: Compound interest is the interest earned by reinvesting the interest earned in earlier period till…
Q: The present worth in year 10 of a decreasing geometric gradient series was calculated using…
A: a
Q: Find the profitability index for Oman Clothing Company if the initial investment is 700 OMR and the…
A: The profitability index shows how much time is taken to recover the initial investment made in the…
Q: An automobile that cost Php975,500 in 2004 has an equivalent model four years later in 2008 that…
A: Cost in 2004 = Php 975,500 Cost in 2008 = Php 1,112,500 Period = 4 Years
Q: Lux Co. would like to maintain its cash account at a minimum level of P25,000, but expect the…
A: Optimal upper cash limit means the limit where the cash balance is of the amount which is of ideal…
Q: Wells, Inc., has identified an investment project with the following cash flows. Year Cash Flow $…
A: Future value at year 4 = [Year 1 cash flow x (1 + r)3] + [Year 2 cash flow x (1 + r)2] + [Year 3…
Q: Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR…
A: Profitability index is a part of capital budgeting decision where present value of cash inflows and…
Q: Calculate to at least four decimal places, answers should be stated as percentages to two places for…
A: Internal rate of return or IRR is the rate at which the net present value or NPV of a project is…
Q: National Co. would like to maintain its cash account at a minimum level of P25,000, but expect the…
A: Trading cost per transaction (F) = P 200 Standard deviation (S) = P 2000 Minimum level (L) = P 25000…
Q: In October 2017 a pound of apples cost $1.49, while oranges cost $1.13. Two years earlier the price…
A: c) Hence, the price of apples in 2030 is $4.00.
Q: Erik Fineman estimates that over the past five years the arithmetic average return of his Bitcoin…
A: In the given question we require to calculate the return during the third year.
Q: The following formula is used in determining its optimal level of cash. Assume that the fixed cost…
A: solution given the fixed cost of a transaction (b) =P10 total cash needed for the time (T)…
Q: Which of the following 1-year investment has the highest rate of return? S500 that yields S110 in…
A: The questions are multiple choice questions. Required Choose the Correct Option.
Q: You have been depositing money into an account yearly based on the following investment amounts,…
A: Amount of Investment Rate Time FVA Value at the end of the period (A) (B) (C) (D) (A * D)…
Q: You have $38,000 to invest. If you invest in an ETF that follows an index you will pay $15.10 in…
A: Investment Amount $ 38,000.00 Commission $ 15.10 Yearly Charge 0.50% Return 8.70%…
Q: Which of the following statements is true? Assume the convenience yield for copper is 1%. If the sum…
A: Observations: For a convenience yield of 1%, and given the percentage of storage and fixed costs of…
Q: Shenandoah Springs Company is considering two investment opportunities whose cash flows are provided…
A: The present value index is a ratio of the present value of inflows and the present value of outflows…
Q: Assume that in 2018 a copper penny struck at the Philadelphia mint in 1796 was sold for $450000 what…
A: Given information: Let us assume the value in 1796 is $0.01 Value in 2018 is $450,000
Q: An investment of $1,000 was made 35 years ago. What is the amount now at the market interest rate of…
A: FV = PV (1 + r)n where, FV = Future ValuePV = Present Valuer = Interest Raten = No.…
Q: In October 2017 a pound of apples cost $1.50, while oranges cost $1.14. Four years earlier the price…
A: Compounded annual growth rate and future value can be calculated using following formula FV = PV* (1…
Q: Assume that in 2018, a copper penny struck at the Philadelphia mint in 1795 was sold for $405,000.…
A: Calculation of rate of return on investment:Answer:The rate of return on investment is 8%Note:1cent…
Q: Firms require capital to invest in productive opportunities. The best firms with the most profitable…
A: The short term or long term interest rate can be identified from the term structure of interest…
Q: Assume the returns from holding an asset are normally distributed. Also assume the average annual…
A: Solved using Excel: Excel Formula = NORM.DIST(X, Mean, Standard deviation, Cummulative) Where, X =…
Q: The present value of the following cash flow stream is $8,400 when discounted at 9 percent annually.…
A: given, year cashflow 1 2000 2 3 2600 4 3200 rate 9% present value 8400
Q: The present worth of income from an investment that follows an arithmetic gradient was projected to…
A: Annuity refers to series of equalized payments that are paid or received at start or ending of…
Q: Green Corporation anticipates a cash requirement of P1,500 over a 1- month period. It is expected…
A: The question is based on the concept of Financial Management.
Q: An investment has the following cash flow series where interest is 7.0%: End of Year Cash Flow End…
A: The conceptual formula is:
Q: Assume that in 2018, a copper penny struck at the Philadelphia mint in 1795 was sold for $360,000.…
A: Future Value = Present value * (1+rate)^n Where, n= no. of years i.e. (2018-1795) 223 years
Q: Fox Co. has identified an investment project with the following cash flows. Year 1 Cash Flow $1,330…
A: Present value can be defined as the current value of an amount of money or a series of cash inflows…
Q: For an investment account, you are given the following information on the in- vestment activity that…
A: Given: Dollar weighted return idw=19.6078%
Q: Assume the returns from holding an asset are normally distributed. Also assume the average annual…
A: Probability solved in excel Excel function is =NORM.DIST(X, Mean, Standard Deviation,cummulative)…
Q: In October 2017 a pound of apples cost $1.61, while oranges cost $1.25. Two years earlier the price…
A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: Calculate the lower limit, the return point, and the upper limit based on the Miller-Orr model of…
A: Information provided: Transaction Cost = $100 Variance of daily cash flow = $20,000 Oppurtunity cost…
Q: The CFO of the company believes that an appropriate annual interest rate on this investment is 6.5%.…
A: An annuity is usually a series of even cash flows. There can also be cases of a growing annuity in…
Q: Find the profitability index for Oman Clothing Company if the initial investment is 700 OMR and the…
A: The profitability index shows how much time is taken to recover the initial investment made in the…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Assume that in 2018. a copper penny struck at the Philadelphia mint in 1793 was sold for $240,000. What was the rate of return in this investment?Mendez Company has identified an investment project with the following cash flows. Year Cash Flow 1 $770 2 1,030 3 1,290 4 1,400 a. If the discount rate is 10 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 25 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Fox Co. has identified an investment project with the following cash flows. Year Cash Flow 1 S 1,090 2 940 3 1, 490 4 1,850 a. If the discount rate is 12 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 15 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) c. What is the present value at 21 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
- Buccaneer, Inc., has determined that it needs $10 million in cash per week. If Buccaneer needs additional cash, it can sell marketable securities, incurring a fee of $100 for each transaction. If Buccaneer leaves funds in its marketable securities, it expects to earn approximately 0.2% per week on their investment. 1. How much is the weekly opportunity cost of cash? (Use a number, must be in decimal form. eg. 6.3%/100, encode 0.063 , no commas, no currency, no space) * 2. How much is the total demand for cash per week? (Use a number, no decimal value, no commas, no currency, no space) *Fuente, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,075 2 1,210 3 1,340 4 1,420 a. If the discount rate is 8 percent, what is the future value of the cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the discount rate is 11 percent, what is the future value of the cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. If the discount rate is 24 percent, what is the future value of the cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Christie, Incorporated, has identified an investment project with the following cash flows. Year Cash Flow 1 $1,020 2 1,250 3 1,470 4 2,210 a. If the discount rate is 6 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the discount rate is 14 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. If the discount rate is 21 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2…
- An investment under consideration has a payback of seven years and a cost of $884,000. Assume the cash flows are conventional. If the required return is 11 percent, what is the worst-case NPV? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Experts please reject this question - I'm testing a flow. Today, the US dollar is trading at ₵4.60, compared to ₵4.20 a year ago. What is the percentage appreciation/depreciation of the dollar relative to the cedi? What is the percentage appreciation/depreciation of the cedi relative to the dollar? Please comment on your results.As part of their investment strategy, the Carringtons have decided to put $100,000 into stock market investments and also into purchasing precious metals. The performance of the investments depends on the state of the economy in the next year. In an expanding economy, it is expected that their stock market investment will outperform their investment in precious metals, whereas an economic recession will have precisely the opposite effect. Suppose the following payoff matrix gives the expected percentage increase or decrease in the value of each investment for each state of the economy. Expanding Economic economy recession Stock market investment Commodity investment 20 10 -10 15 (a) Determine the optimal investment strategy for the Carringtons' investment of $100,000. (Round your answers to the nearest dollar.) stocks $ commodities $ (b) What profit can the Carringtons expect to make on their…
- As part of their investment strategy, the Carringtons have decided to put $100,000 into stock market investments and also into purchasing precious metals. The performance of the investments depends on the state of the economy in the next year. In an expanding economy, it is expected that their stock market investment will outperform their investment in precious metals, whereas an economic recession will have precisely the opposite effect. Suppose the following payoff matrix gives the expected percentage increase or decrease in the value of each investment for each state of the economy. Expanding Economic economy recession Stock market investment Commodity investment 30 5 -10 20 (a) Determine the optimal investment strategy for the Carringtons' investment of $100,000. (Round your answers to the nearest dollar.) stocks $ commodities $Jiminez Company has two investment opportunities. Both investments cost $5,000 and will provide the following net cash flows: Year Investment A investemen B 1 3,000 3,000 2 3,000 4,000 3 3,000 2,000 4 3,000 1,000 What is the total present value of Investment A's cash flows assuming an 8% minimum rate of return? (Do not round your intermediate calculations. Round your answer to the nearest whole dollar.) A) $14,936. B) $4,936.…PAR Ltd is considering an investment and has determined the following: Expected net cash flows: – Year 1 $65,967 – Year 2 $70,290 – Year 3 $135,391 – Year 4 $103,435 – Year 5 $100,998 Annual depreciation $20,660 Period of investment 5 years Initial investment $611,246 Value at end of the investment period $124,671 Calculate the Accounting Rate of Return. Express your answer in a percentage with 2 decimal places.
