True or false: The formula An = 1000 + 30n can be used to calculate the final amount in an investment account that pays 0.3% simple interest pa on a capital sum of $1000.
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True or false: The formula An = 1000 + 30n can be used to calculate the final amount in an investment account that pays 0.3% simple interest pa on a capital sum of $1000.
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- Select the correct answer, explain What interest will produce a capital of $ 59,000.00 in 1 year 4 months at 21.5% per year? A. $ 14,333.33 B. $ 13,433.33 C. $ 13,580.00 D. $ 14,530.00Compare these two investments A: A USD 1,000,000 investment that earns USD 50,000 in interest. B: A USD 200,000 investment that earns USD 15,000 in interest. • Which one generates more investment? • Which one earns a higher return on investment? • Which is the best investment option?If the cost of capital is 18 percent and an investment costs $51,000, should you make this investment if the estimated cash flows are $8,000 for years 1 through 3, $11,000 for years 4 through 6, and $21,000 for years 7 through 10? Use Appendix B and Appendix D to answer the questions. Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar. NPV: $ The investment be made.
- You are offered an investment with returns of $ 2,213 in year 1, $ 4,670 in year 2, and $ 3,184 in year 3. The investment will cost you $ 6,506 today. If the appropriate Cost of Capital is 7.6 %, what is the Net present Value of the investment?You invest $5000 at time t=0 and an additional $2000 at time t=1/2. At time t=1/2 you have $5300 in your account and at time t=1 you have $7300 in your account. Find the dollar-weighted rate of return rd and the time-weighted rate of return rt on this investment.A. rd= 2.86 %, rt=3.43 %B. rd= 2 %, rt=2.4 %C. rd= 6.26 %, rt=7.5 %D. rd= 2.51 %, rt=3 %E. rd= 5.01 %, rt= 6 % Please answer it only correct without using ExcelAssume $100,000 is available for investment and MARR =10% per year. If alternative A would earn 25% per year on inveatment of 60,000 and B would be earn 20% per year on investment of 75000 the weighted average(ROR) of A
- A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 –$ 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 ReturnToday (t=0), you invested the starting prinipal of 1536 dollars. At the end of the first, second and third years, you will receive payments in the amount of 40%, 45% and 50% respectively of your initital investment. What is the net present value (NPV) of the investment if the minimum attractive rate of return (MARR) is 7.8%. Calculate the MARR for an NPV between $0 and $1 and draw the cash flow diagram.A real estate investment has the following expected cash flows: Year Cash Flows 1 $15,000 2 14,000 3 19,000 4 21,000 The discount rate is 6 percent. What is the investment’s present value? Round your answer to 2 decimal places; for example 2345.25.
- What is the present value of an investment that pays $190 at the end of year 1, $107 at the year of year 2, and $235 at the end of year 3 if this investment earns 5% annually? your answer should be to the nearest dollar. For example, if your answer is id=mce_marker50, then input as 150.If the market value of firm A is $1.5 million and the replacement cost of capital is $450,000, find the Tobin's q.An investment pays $200 at the end of Year I. $250 at the beginning* of Year 2. $387 at the end of Year 4. and $500 at the beginning of Year 6. If other investments of equal Mk earn 7.5% annually. what will be this investments present value and future value?