What is the present value of your end-of-year investment of $1,000 per year, with the first cash flow received three years from today and the last one 10 years from today? Use a discount rate of 12 percent.

Q: Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years.…

A: IRR is the rate at which NPV of the project is zero. Using excel IRR function

Q: An investment offers $12,000 per year for 20 years, with the first payment occurring one year from…

A: The time value of money concept holds the utmost relevance while determining the future value and…

Q: You deposit $19,000 today in an investment account and the annual rate of return is 12%, what will…

A: Formulas: Future value = Present value *(1+rate)^years

Q: An investment offers $6,125 per year for 15 years, with the first payment occurring one year from…

A: The present value of an investment refers to the sum amount of money that will be required today in…

Q: An investment will pay you $80,000 in 10 years. If the appropriate discount rate is 9 percent…

A: Calculation of Present value (PV):

Q: What is the present value of your-end-of-year investment of $1000 per year, with the first cash flow…

A:

Q: Calculate the equivalent lump-sum(total) receipt now for the following cash flows: You invest $3,000…

A: Equivalent lump sum receipt: It is the equivalent value of the lump sum received at a different…

Q: You invest $12,650 in a project today. You expect to receive cash flows $3,200, $5,160, $4,288,…

A: Discounted payback period is calculated as number of years required for a project to recover the…

Q: Suppose an initial investment of $100 will return $50/year for three years (assume the $50 is…

A: Given information:Initial investment = $100Discount rate = 20%Return:Year 0 =0Year 1 =$50Year 2…

Q: An investment offers $6,300 per year, with the first payment occurring one year from now. The…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

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: Suppose that starting one year from now you will receive $560 a year at the end of every year. If…

A: Present value of perpetuity = perpetuity amount / discount rate

Q: You buy a new piece of equipment for $16,230, and you receive a cash inflow of $2,500 per year for…

A: The internal rate of return (IRR) is the interest rate received for investment with payments and…

Q: You will receive $4,000 three years from now. The discount rate is 10 percent.  a) What is the…

A: In the given question we need to compute the value of investment after two years and one year from…

Q: You invest $10,000 in Rapid Growth Funds, which appreciate by 1% per year, with yields reinvested…

A: In this question one has to find the future value of the project or account.

Q: You wish to have an investment that will bring about $50 000 in ten years, and the rate of return is…

A: Value of investments after 10 years=$50,000Rate of return(r)=8%Time(n)=10 years

Q: Suppose you invest $2,000 today and receive $11,000 in five years. a. What is the internal rate of…

A: IRRIt is a capital budgeting technique of a discounted cash flow that gives a rate of return is…

Q: What is the present value of your end-of-year investment of $1,000 per year, with the first cash…

A: According to the time value concept, the purchasing power of a sum of money today is more than the…

Q: What would the value of your investment be after five years if you invest P5,000 in a financial…

A: The value of the investment can be calculated with the help of future value formula. Since the…

Q: You are valuing an investment that will pay you $25,000 per year for the first 7 years, $29,000 per…

A: Annual discount  rate is 13% Amount paid for first 7 years is $25,000 Amount paid for next 12 years…

Q: An investment opportunity has the following characteristics: payments of $10,000 will be made to you…

A: In order to find the purchase price of investment opportunity the present value of the opportunity…

Q: Mr Ridzuan Azli expects to receive RM1,000 at the end of the first year and second year, RM2,000 at…

A: Hi there, Thanks for posting the question. Per Q&A guidelines, The solution for the first…

Q: An individual expects his return on an investment to be $10,000 the first year and to increase…

A: Therefore, the present worth is $57,595.10.

Q: What is the simple annual rate of return on a $10,000, 3-year investment with cash inflows of $2,000…

A: The simple annual rate of return is calculated by dividing the annual cash flow by the initial…

Q: You deposit $10,000 into an investment account.  You believe that you can reasonably expect a…

A: A future value formula can be used to calculate the value of investment (FV) after 30 years. The…

Q: You have just received a windfall from an investment you made in a friend’s business. You will…

A: a) Present value = Future value / (1 + Rate)^Time Present value = $14,050/1.06 + $3,250/1.06^2 +…

Q: Solve the following problem. Use Excel, financial calculator, or PV and FV Tables. Show your work…

A: given information   amount = AED 10000 every year  time period = 4years = 16 quarters interest rate…

Q: You are evaluating a growing perpetuity product from a large financial services firm. The product…

A: here is the formula for calculating the present value of growing perpetuity PV = A/(r-g) where…

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: Present value can be calculated by using this equation PV =FV(1+r)n where FV =Future value PV…

Q: Suppose you have the opportunity to make an investment in a real estate venture that expects to pay…

A: The concept that helps to evaluate the future or present value of the cash flow is term as the time…

Q: What annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years?

A: Future value is the value of assets at a future date given a growth rate. This is used for financial…

Q: You are evaluating a growing perpetuity product from a large financial services firm. The product…

A: The cash flows that are started immediately after the investment and go on for an infinite time…

Q: If you invest a lump-sum amount of P25,000 at an interest rate of 12%, compounded annually, how much…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: You are considering an investment that will pay you $1,200 per month for three years. The first…

A: An annuity is a series of equal payments occurring at regular intervals. The present value is…

Q: :Sidir steinəl What is the present value of your end-of-year investment of $1,000 per year, with the…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: An investment costs $465 and is expected to produce cash flows of $100 at the endof each of the next…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: What is the present value of a perpetual stream of cash flows that pays $80,000 at the end of year…

A: Year 1 cash flow (CF1) = $80,000 Growth rate (g) = 0.06 Interest rate (r) = 0.10 Present value = ?

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: Time value The amount of money received today has more value than that of receiving the same amount…

Q: what is the internal rate of return of $10,000 investment that yields an annual benefit of $2,400…

A: Using IRR function in excel

Q: What is the rate of return on an investment of $10,606 if the company will receive $2,000 each year…

A: The rate of return on an investment is the ratio of profits earned on an investment made by the…

Q: What is the present worth of the project, whichrequires $130,000 investment now and receives$40,000…

A: given, rate =14% Initial investment = $130,000 annual cashflow=$40,000 year=6

Q: An investment offers to pay you $300 per quarter for 10 years. If the annual rate is 11% with…

A: Calculate the present value as follows:

Q: present

A: Formula to calculate present value of growing perpetuity  Payment for the first year/Discount rate -…

Q: A similar application for investment yields can be made in cases where monthly cash annuities will…

A: PRESENT VALUE 51593 NPER (n)  240 PMT 400 FUTURE VALUE 0

Q: Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the…

A: The value of the cash flow after a particular time period with the addition of the interest amount…

Q: You wish to have an investment that will bring about $20 000 infive years, and the rate of return is…

A: According to time value of money concept, the amount of dollar that is received today is more worth…

Q: A. A person wants to generate fourintallments of $1,000 in the following four years. How much money…

A: Discounting the future cashflows provides the present value.

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.