Problem 2: The amount of an investment is represented by f(t) = 4186.58(1.025)*. Algebraically, determine when (in compounding periods t) the investment will reach $1,000,000.
Q: 3. A company is considering a project with the following cash flows. The external interest rate is…
A: Rate of return can be computed using IRR formula in excel.
Q: 4. An investment has the following cash flows. What is the ARR? Year 0 -90,000 Year 1 45,000 Year 2…
A: Year Cash Flows 0 -90,000 1 45,000 2 10,000 3 30,000 4 30,000
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Q: In the equation the original amount for the investment is $840,000. Why in the first step of the…
A: Investment = $840,000 Profit = 1,500,000
Q: 2. An investment has the following cash flows - what is the payback ? Question 2 -90,000 45,000…
A: Introduction Payback period: It is the method of capital investment evaluation. This method…
Q: 3. An investment has the following cash flows. What is the ARR? Year 0 -120,000 30,000 40,000 60,000…
A: Cost of Investment : $120,000 Project Life : 5 Years Depreciation per year : $120,000 / 5 = $24,000…
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A: IRR is rate that makes present value(PV) of inflows and outflows of proposal equal whereas ERR is…
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A: Payback period = Initial investment/Annual cash inflows
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A: Capital budgeting is the process by which a corporation examines potential large projects or…
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A: IRR refers to the annualized rate of return for a given project. Higher the IRR, better the…
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A: given, A=600×1.0317tt = no of years since 2006
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A: The profitability index (PI) is a financial tool to measure the profitability of a proposed…
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A: Internal Rate of Return: In the field of financial analysis, a statistic known as the internal rate…
Q: Calculate the internal rates of return of the following investment: Net investment -$1,000 Year 0…
A: Initial investment (I) = $1000 Cash flow in year 1 (CF1) = $6000 Cash flow in year 2 (CF2) = -…
Q: If a capital investment is $28,048 and equal annual cash inflows are 62,605.3, state the internal…
A: Solution: Internal rate of return factor is arrived at by dividing capital investment by annual cash…
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A: The given problem can be solved using MIRR function in excel. MIRR function computes rate of return…
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A: "Hi, Thanks for the Question. Since here no sub-parts are specified to answer and multiple sub-parts…
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A: Year Cash Flow 0 $ - 1 $ -80,000.00 2 $ 9,000.00 3 $…
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A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
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A: IRR: IRR or Internal rate of return is the rate at which net present value of cash flows is equal to…
Q: Assume a company is going to make an investment of $460,000 in a machine and the following are the…
A: The payback period is the amount of time it takes to repay an asset's investment through net cash…
Q: 1- Calculate the rate of return to be obtained for the investment to be made in the 1st year…
A: In manual calculation, we have to use hit and trial method. In this method, we start by arbitrarily…
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A: Investment amount (PV) = 6,250 Future value (FV) = 14,450 Annual interest rate (r) = 6% Number of…
Q: 4. Capital expenditure of a new investment project is $ 120,000,000; the expected annualnet cash…
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Q: 1. An investment has the following cash flows - what is the payback ? Question 1 Year 0 -120,000…
A: Payback period means the time with in which we will get our investment amount back.
Q: - Suppose that the cash flows of two investments are as follows: Unit: S CASH FLOW AT YEAR YEAR: 2…
A: Solution : Computation of NPV Investment A Investment B Particulars Period PV Factor…
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A: Formulas:
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A: Net present value of the investment means difference of present values of cash inflows and cash…
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Q: Exercise 2 Masikap has an investment opportunity costing P180,000 that is expected to yield the…
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- Assume a company is going to make an investment in a machine of $825,000 and the following are the cash flows that two different products would bring. Which of the two options would you choose based on the payback method?Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)3. If a capital investment is $28,752.7 and equal annual cash inflows are 69,943.5, state the internal rate of return factor rounded to two decimal places.
- a) 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…Assume a $6,500 investment and the following cash flows for two alternatives. Year Investment X Investment Y 1 $ 1,000 $ 1,300 2 1,800 2,000 3 1,700 1,100 4 2,000 1,500 5 600 Under the payback method, which of the following could be concluded?A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 –$ 148,000 1 68,000 2 71,000 3 55,000 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) A. The Initial Rate on Return
- 1. If the investment is expected to earn revenue of P4,000,000, with cash expenses amounting to P1,500,000 each over its life, What is the payback period in years? 2. If the investment is expected to earn increase revenue by P750,000 annually with cash savings on expenses of P120,000 each over its life, what is the accounting rate of return of this investment?Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 (434,000) (44,500) 1 $39,500 $21,300 2 $66,500 $12,400 3 $83,500 $23,100 4 $549,000 $19,900 The re quired return on these investments is 11 percent. a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. d. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161. e. Based on your answers in (a) through (d), which project will you finally choose?A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 –$ 150,000 1 66,000 2 73,000 3 57,000 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
- Calculate the internal rates of return of the following investment: Net investment -$1,100 Year 0 Net cash flows +6,500 Year 1 -11,400 Year 2 +6,000 Year 3 Round your answers to the nearest whole number and enter them in ascending order. IRR1: 0% IRR2: % IRR3: %(1). Complete the table for an investment subject to n compoundings yearly A=P1+rnnt. Amount Invested Number of Compounding Periods Annual Interest Rate Accumulated Amount Time t in Years $40,000 365 10.2% $100,000 ? Amount Invested Number of Compounding Periods Annual Interest Rate Accumulated Amount Time t in Years $40,000 365 10.2% $100,000 enter your response here (Round to one decimal place as needed.) (2). Prehistoric cave paintings were discovered in a cave in France. The paint contained 39% of the original carbon-14. Use the exponential decay model for carbon-14, A=A0e−0.000121t,to estimate the age of the paintings. Question content area bottom Part 1 The paintings are approximately enter your response here years old. (Round to the nearest integer.) (3). Use the exponential decay model, A=A0ekt, to solve the following. The half-life of a certain substance is…Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$426,000 –$40,500 1 43,500 20,500 2 62,500 13,200 3 79,500 19,100 4 541,000 15,900 The required return on these investments is 12 percent. a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) d. What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) e. Based on your answers in (a) through (d), which project will…
