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?

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: Find the annual worth (AW) of the following investments (from year 1 to year 20) if you invest $600…

A: Investment schedule:

Q: Investment If $5000 is invested for 6 years atinterest rate r (as a decimal), compounded annually,…

A: future value formula: Future value=present value×1+rateyears

Q: How much would you be willing to pay today for an investment that would return P1,250 each year for…

A: The amount to be paid today is calculated as the present value of annuity

Q: An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $400…

A: Present value is the current worth of the future payments to be made at a specified interest rate.…

Q: You have an investment opportunity that requires an initial investment of $3,600 today and will pay…

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

Q: a) The initial outlay of the investment is €125,000. The income stream is €30,000 in year 1, €55,000…

A: Given Information: Initial investment - 125,000 Income stream: Year 1 - 30,000 Year 2 - 55,000 Year…

Q: What is the present value of receiving $1,950 a year for 30 years if you expect a rate of return of…

A: Present Value = Future Value / (1+rate)^n

Q: Consider the following investment project. Calculate the net future worth of this investment at 6%…

A: Future worth of investment is future value of cash flows less future value of initial investment  if…

Q: f you put up $1,250 in a one-year investment and get back $1,350. What rate is this investment…

A: Time period is 1 year Present Value is $1,250 Future Value is $1,350 To Find: Rate on this…

Q: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300…

A: The present value is the present market price of a certain amount which is carrying the expected…

Q: You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive…

A: Amount Investved today is $10,000 Cash flow at year 1 is $500 Cash flow at year 2 is $1,500 Cash…

Q: An investment will pay $50 at the end of each of the next 3 years, $200 at the end of Year 4, $350…

A: Present value is the current value of the future payments at a given rate of interest. Future value…

Q: What is the payback if an investment’s cost is $45,000 and the after-tax benefit is $2,000 per year?

A: Formula to be used: Payback period = Investment / Profit after tax

Q: what is its present value? Its future value?

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: sent worth of income from an investment that follows an arithmetic gradient was projected to be P…

A: Gradient mean that there is constant growth of annuity by the fixed interval and in this we need to…

Q: What is the present value (PV) of an investment that will pay $600 in one year's time, and $600…

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

Q: An investment will pay $50 at the end of each of the next 3 years, $200 at the end of Year 4, $350…

A: In first 3 years, the cash flow is same. So, annuity formula can be used to calculate present…

Q: You have the opportunity to make an investment that costs $1.000,000. If you make this investment…

A: YEAR CASH FLOW      0  $                                   (1,000,000.00) 1  $…

Q: You are looking at an investment that will pay you $22,995 in year 2, $43,270 in year 4 and $41,525…

A: The present worth of the investment will include the discounted value of all single payment which…

Q: An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $300…

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: You have the opportunity to make an investment that costs $1.000,000. If you make this investment…

A: The net present value of the investment can be calculated with the help of discount rate. If the…

Q: An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $400…

A: Year Payment 1 150 2 150 3 150 4 250 5 400 6 600   Interest rate = 8%

Q: You have been offered an investment opportunity that pays $600 every quarter for nine years and…

A: Current value is the present value of the future payments at a given rate of return. Given:…

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 an investment opportunity that requires an initial investment of $5,000 today and will pay…

A: The rate of return is the rate at which the amount is invested or the investor will receive the…

Q: If you invest $4,000 today at 10% interest, what is the value of the investment at the end of 5…

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

Q: Consider an asset that costs $120 today. You are going to hold it for 1 year and then sell it.…

A: The expected return of a portfolio is the weighted average of the return of the individual…

Q: If the current rate of interest is 5%, then the future value (FV) of an investment that pays $1,000…

A: The question is based on the concept of future value calculation of annuity payment, by use of…

Q: An investment opportunity requires a payment of $910 for 12 years, starting a year from today. If…

A: The question gives the following information:

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: An example of how to calculate net present value is done using the following. Imagine you have been…

A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…

Q: If you invest $2000 now, and receive 3 yearly payments of $100 each year plus $2500 in the 3rd year,…

A: i) IRR is the discount rate at which Present Value of cashinflows is equal to Present Value of cash…

Q: You have the opportunity to make an investment that costs $1.000,000. If you make this investment…

A: Excel Spreadsheet:

Q: What is the returnon an investment that costs $1,000 and is soldafter 1 year for $1,060?

A: Given information: Investment cost (purchase price) is $1,000 Sale price is $1,060

Q: Consider an investment that costs 100,000 and has a cash inflow of 30,000 every year for 5 years.…

A: Given Information, Initial Cost =100,000 Cash Inflow = 30,000 Annually  Time Period =5 years…

Q: future value of an investment made 5 years ago is P150,000. If the investment offered an annual…

A: Effective rate goes on increasing if the compounding goes on increasing. And effective rate is less…

Q: If you put up GHC1,250 in a one-year investment and get back GHC1,350. What rate is this investment…

A: Investment is referred as an asset that are invested or acquired for building the wealth as well as…

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: An investment  opportunity requires a payment of $750 for 12 years, starting a year  from today. If…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: a) What single investment made today, earning 12% annual interest, will be worth $6,000 at the end…

A: The question is related to Time value of money. The present value is calculated with the help of…

Q: You are considering a one-year investment. If you invest $1 250 you will get back $1 350. What rate…

A: Present value is $1,250. Future value is $1,350. The maturity period is one year.

Q: You are considering a safe investment opportunity that requires a $710 investment today, and will…

A: Minimum acceptable rate of return  It  is the lowest rate of return  which a  project must be…

Q: an investment will pay $2,445 two years from now, $3,433 four years from now, and $1,611 five years…

A: The present value of an investment is affected by the inflation rate and growth rate for a specified…