ur investment is growing at 20%, how would you calculate how long it would take to double in size? Group of answer choices 1. =log(2)/log(1.2) 2. =log(1.2)/log(2) 3. =log(2)/log(0.2) 4. =log(0.2)/log(2
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Q12. If your investment is growing at 20%, how would you calculate how long it would take to double in size?
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- If your investment is growing at 20%, how would you calculate how long it would take to double in size? a)=log(2)/log(1.2) b) =log(0.2)/log(2) c)=log(2)/log(0.2) d)=log(1.2)/log(2)The following table gives the available projects (in $millions) for a firm. ABCDEFG 122 52 92 82 182 72 52 Initial investment 172 102 97-42 62 64 42 NPV If the firm has a limit of $338 million to invest, what is the maximum NPV the company can obtain?(a) Find the value at risk (VaR) for an investment of $100,000 at 5%. (That is, find out how low the value of this investment could be if the worst 5% of outcomes are ruled out.) The investment is expected to grow during the year by 12% with SD 24%. Assume a normal model for the change in value. (b) To reduce the VaR to $14,000, how much more expected growth would be necessary? Assume that the SD of the growth remains 24%. Round to the nearest integer (a) The value at risk (VaR) for an investment of $100,000 at 5% is $nothing. (Round to the nearest thousand dollars as needed.)
- You estimate that a planned project for your company has a 0.3 chance of tripling the investment in a year and a 0.7 chance of halving the investment in a year. What is the standard deviation of the return on this project? A.1.5625 B.1.3126 C.1.2247 D.1.1457What is the net present value of an investment that requires a 10 percent minimum rate of return and has the following projected cash flows: Yr0 = -100, Yr1 = 25, Yr2 = 35, Yr3 = 45, Yr4 = 35, and Yr5 = 30? a. 41 b. 28 c. 34 d. 35Giorgio Co. is looking at an investment project with an internal rate of return of 10.8%. The initial outlay for the investment is $90,000. The hurdle rate or minimum acceptable rate of return is 10.2%.
- A firm evaluates all of its projects by applying the IRR rule. If the required return is 18 percent, will the firm accept the following project?CF0 = -$30,000CO1 = $20,000C02 = $14,000C03 = $11,000 yes or noQ11. Schneeberger, Inc. is considering investing in one of two alternatives for increasing the acceleration of its linear motor actuators. The first, alternative X, requires an initial investment of $165,000 and its cash flows exhibit an annual rate of return of i*x = 25%. The second, alternative Y, requires an initial investment of $150,000 and its cash flows have an annual rate of return of i*Y = 15%. Schneeberger’s MARR is 20% per year. Answer the following questions; (a) Will the rate of return on the incremental investment in X be larger or smaller than i*X? (b) What is the expected i*X-Y? The rate of return on the increment is (Click to select) greater than less than 25% per year. The expected i*X-Y is %.Consider the following projects, X and Y where the firm can only choose one. Project X costs $1500 and has cash flows of $678, $652, $347, $111, $54, $16 in each of the next 6 years. Project Y also costs $1500, and generates cash flows of $738, $693, $405 for the next 3 years, respectively. WACC=11%.There is a “crossover rate” of X’s and Y’s NPV curves, and mark it on the graph with Point O. Explain in words what this rate is and how it affects the choice between mutually exclusive projects.
- What is the internal rate of return of an investment that requires a 10 percent minimum rate of return and has the following projected cash flows: Yr0 = -100, Yr1 = 25, Yr2 = 35, Yr3 = 45, Yr4 = 35, and Yr5 = 30? a. 19.33 percent b. 21.35 percent c. 20.05 percent d. 22.24 percentYou have an opportunity to invest $104,000 now in return for $79,800 in one year and $29,600 in two years. If your cost of capital is 9.2%, what is the NPV of this investment? Question content area bottom Part 1 The NPV will be $XX enter your response here . (Round to the nearest cent.)USE EXCEL TO SHOW FORMULAS Elizabeth Corporation is starting two new projects. Project A requires an investment of $5,000, has expected return of 16% with standard deviation 14%. Project B has initial investment of $15,000, expected return of 15% with standard deviation 10%. The correlation coefficient between the projects is 0.75. 1- Find the expected return, in dollars, of the portfolio of these two projects. 2- What is the probability that this return is less than $4,000?