ould you rather have $7,500 today or at the end of 20 years after it has been invested at 15%? Explain your answe

Q: Suppose that $1000 is invested now, $2000 is invest two years from now, and $3000 is invested four…

A: Calculate the future value as follows:

Q: The desired accumulated amount is ​$70,000 after 11 years invested in an account with 7.4​% interest…

A: We will use the concept of time value of money here. As per this concept the worth of money changes…

Q: ,what is the NPV of this​ investment?

A: Net Present Value: It is a measure of profitability and shows the absolute profit or loss made from…

Q: 2. ABC Corporation plans to set aside $50,000 per year beginning 1 year from now for replacing…

A: Annual amount (P) = $50,000 Interest rate (r) = 10% Inflation rate (i) = 4% Period (t) = 6 Years

Q: Your firm has taken on cost saving measures that will provide a benefit of $11,000 in the first…

A: First year benefits (C) = $11,000 Annual growth rate (g) = - 0.03 (-3%) Interest rate (r) = 0.09…

Q: Assume you made an investment today for $27,000 and sold it 15 years later for $75,000. What is the…

A: In this question we need to calculate CAGR i.e. Compound Annual Growth rate from given details:…

Q: Please show all equations and work as needed. Make the correct answer clear. If possible, please…

A: The present value (PV) of the investment is the sum of the present value of year 1 cash flows, year…

Q: You are considering an investment costing $300,000. If you want to recover the initial investment,…

A: Formula:

Q: Consider two investments:1. Invest $1000 and receive $110 at the end of each month for the next 10…

A: Investment 1: Initial investment=$1000Interest rate=12% Uniform annual benefit=$110 Investment 2:…

Q: A Company project of 10 years, Paying 2,000,000 a year with a 4% growth each year, at the end it…

A: Calculation of Present Value:To calculate the present value, first we need to calculate the present…

Q: A company has an investment project that would cost $10 million today and yield a payoff of $15…

A: If present value of future value is more than initial investment than investment is accepted.

Q: You wish to have $23,000 in 10 years. Use Table 11-2 to create a new table factor, and then find how…

A: The question gives the following information:

Q: If a company is investing money at 6% interest compounded monthly and wants to have $40,000 in 4…

A: Calculate the payment as follows:

Q: A company is expected to result 2900$ savings first year then increase by 200$ annually, if the rate…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: quarterly

A: Introduction: The amount that would be in the account at the end of a particular time period is…

Q: With a margin of 120 million of a base year that grows at 10%, some commissions collected of 205…

A: Calculate the margin in the following year (Margin T+1) by multiplying the margin in the base year…

Q: Two years ago. XYZ invested $13,800. In 3 years from today, he expects to have $26,200. If XYZ…

A: Calculate the implied interest rate, Use the same interest rate to calculate the years  Using excel…

Q: Use the graph below to answer the following questions.   What is the approximate final value of…

A: Future value = Present value * ( 1 + Interest rate )time

Q: A company is considering an investment expected to yield $70,000 after six years. If this company…

A: Present value: It can be defined as today’s value of the sum of money that will be received by the…

Q: If u make an investment of $3500 and the investment loses a continuous 5% each year, what will the…

A: Given information: Present value of investment is $3,500 Investment loses a continuous 5% each year…

Q: A company has an investment project that would cost $10 million today and yield a payoff of $15…

A: Formulas: Net present value = Present value of cash inflow - Initial investment Net present value =…

Q: You have an opportunity to invest $100,000 now in return for $80,000 in one year and $30,000 in…

A: The NPV is calculated as present value of cash inflows less initial investment

Q: You wish to have $23,000 in 12 years. Use Table 11-2 to create a new table factor, and then find how…

A: Using excel PV function

Q: You wish to have $23,000 in 12 years and then find how much you should invest now (in $) at 6%…

A: Given: Compounding  value =$23000Time =12 yearsInterest rate =6%=6100=0.06Compounded quarterly i.e.…

Q: Suppose you are considering a project that will have an initial construction cost today and a final…

A: profitability index is present value of cash flow divided by initial investment.

Q: If you invest $12,000 today , how much will you have: a) In 6 years at 7 percent? b) In 15 years…

A: Investment amount = $12,000 Time period = 6 years  Rate of interest = 7% In this, the future value…

Q: You have been offered a project paying $300 at the beginning of each year for the next 20 years.…

A: Annual payment (P) = $300 Interest rate (r) = 9% Period (n) = 20 Years

Q: Compute the amount that a company must invest (the present value) at 10% compounded…

A: Future value (FV) = $ 100,000 Annual interest rate (r) = 10% Period (n) = 25 Years

Q: How many years will the following take? a. $500 to grow to $1,039.50 if it's invested at 5 percent…

A: We need to use excel NPER formula to calculate number of periods/years Formula is…

Q: A company is expected to result 2900$ savings first year then increase by 200$ annually, if the rate…

A: Annual worth is the value of benefits and costs that would be incurred over a specific time period…

Q: If a company invests $10,000 at 7% simple interest for 20 years, how much will it have at the end of…

A: Formula: Future value = Amount + Interest Future value = $10,000 + ($10,000*7%*20) Future value…

Q: Would you rather have $7,500 today or at the end of 20 years after it has been invested at 15%?

A: According to the time value of money concept, the value of a certain amount of money in the future…

Q: A company is considering a long term investment that requires a $45.000 investment today, and then…

A: Net present value is the difference between present value of cash inflows and initial investment.…

Q: If you wish to have $85000 now how much should you have invested 15 years ago?

A: Let the required investment amount be A to obtain $85,000 after 15 years. Now, compute the interest…

Q: This morning, Mariam Inc invested $800,000 to help fund a company expansion project planned for 4…

A: given, pv = $800,000 n=4  r1= 4.59% r2= 5.59%

Q: You will have $100,000 exactly 7 years from now. You began with an investment of $50,000 at Time…

A: The formula to calculate the fv is FV=Pmt[(1+i)n−1/i] Given: FV=$100,000 PMT=50,000 n=7

Q: A person invest $20000 in a project and earn 20 percent per annum continuously. Calculate; (a) the…

A: Time value of money is the concept that is used in finance for evaluating the worth of money…

Q: You invested $100 6 months ago. Today the value of your investment is $110. What is the CCR over 6…

A: Invested 6 months ago(P) = $100 Amount becomes in 6 months = $ 110

Q: ong will it take a $2000 investment to grow to $2501.50 if it earns 4.5% co

A: If there is more compounding the money grow much faster because effective rate is more.

Q: At what rate would $1,700 have to be invested to grow to $20,692.71 in 29 years?

A: Details given are : Present value = $1700 Future value = $20692.71 Time period = 29 years We require…

Q: What would be the rate of return (IRR) on a project that had an  initial cost of $100,000 today and…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: You are considering an investment product that is expected to generate an annual cash flow of $2,000…

A: Annual cashflow (A) = $2000 starting after 3 years Cost of investment in year 0 (C0) = $10000 C1 =…