What is the simple annual rate of return on a $10,000, 3-year investment with cash inflows of $2,000 each year? A. 10% B. 20% C. 30% D. 40%

Q: what is the future value of cash flow of ¢2,000.00 for the first month and a monthly rise of 0.1%…

A: 1st deposit =2000 Increase per month = 0.1% = 0.001 Increase Factor(r) = 1+0.001 = 1.001 Number of…

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: At what rate must Rm50,000 to grow to 406,855 IN 15 years compounded annually? Select one: a. 18%…

A: Amount Invested = RM 50,000 Amount gro in 15 years = RM 406,855 Years(n) =15 Interest rate = r% let…

Q: A one-year investment yields a return of 15%. The cash returned from the investment, including…

A: We have the following information: A one-year investment yields a return of 15% The cash returned…

Q: An investment in Machinery will yield annual cash earnings of P 12,000. The investment can be…

A: Given, Payback period = 4 years Annual cash earnings = P12,000 First of all, from the payback period…

Q: An initial investment of $ 25000 in a business guarantees the following cash flows:Year Cash Flow3…

A: Net present value: It can be defined as a difference between the PVs (present value) of all future…

Q: Assume a $40,000 investment and the following cash flows for two alternatives.   Year Investment A…

A: Payback period is the number of years required to collect the initial investment made in a capital…

Q: An investment of 199 dollars generates after tax cash flows of 40 dollars in Year 1, 80 dollars in…

A: Net Present Value (NPV) is one of the capital budgeting technique which is used to analyze the…

Q: 5.Given the following cash flow for a certain investment and a MARR of 12% per year: End-of-year…

A: The internal rate of return is the capital budgeting technique used to calculate the rate at which…

Q: An investment of $81,000 yields a net annual income of $17,000 for 6 years. What is the internal…

A: Capital budgeting is the process of making capital investment decisions by a corporation. Capital…

Q: c. A series of quarterly payments of $1000 for 25 years is economically equivalent to what present…

A: Quarterly Interest Rate = Annual Rate / 4 Quarters = 8% / 4 = 2%.Number of Quarters in 25 Years = 25…

Q: An investment of 3000$ in good for 5 years. The annual benefits are either 300S or 1000$ in a given…

A: we need to use RATE function in excel to calculate rate of return. Formula is =RATE(NPER,PMT,-PV)

Q: a)Calculate the intemal rate of retum (IRR) of the following cash flow. Determine if this is a good…

A: IRR is rate that makes present value(PV) of inflows and outflows of proposal equal whereas ERR is…

Q: .If you invest $10,000 now into a project that will yield net revenues of $1.327 at the end of each…

A: Internal rate of return (IRR) refers to the discount rate that is associated with an investment's…

Q: Assume a $50,000 investment and the following cash flowa for two aleternatives..    Year…

A: given, year A B 0 -50000 -50000 1 10000 20000 2 11000 25000 3 13000 15000 4 16000 0 5…

Q: Engineering Economy What value of G makes the two series of cash flows described below equivalent…

A: We calculate the Future Value of Annuity A and input the variables for Future Value of Annuity B in…

Q: 1. The return of an investment is given in the following table: Year Balance RM5000 RM5375 2…

A: Year Balance 0 5000.00 1 5375.00 2 5697.50 3 5925.40

Q: 7. Find the IRR of an investment of 50,000 ETB, whose receipts in the next four years are ETB…

A: IRR is the rate at which the present value of cash flows equals the initial investment. A project…

Q: Find the IRR and NPV of an investment having initial cash outflow of €200,000. The cash inflows…

A: IRR - It is the compounded annual rate of interest at which returns will be accrued on a certain…

Q: b) Aida Kamilia won RM1,000,000 in a contest, to be paid in twenty RM50,000 payments at yearly…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: A financial investment equal to BRL 100,000.00 allows a withdrawal of BRL 20,000.00 in the first…

A: Investment  BRL  1,00,000.00 Withdrawal  BRL     20,000.00 Annual growth 2% Time Period 10…

Q: The in itial cost of an investment is $65,000 and thecost of capital is I 0%. The return is $ 16,000…

A: Net present value is the difference between the present value of cash flow and initial investment.

Q: 3. Assume that you will receive $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through…

A: Introduction: Present Value of cash flows:  It identifies today's value for the future cash flows or…

Q: QUESTION 2 An investor invests $40,000 today, in exchange for continuous cash flows of $15,000 per…

A: 1. Payback Period is the length of time required to recover the cost of Investment. Discounted…

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: Q5: Anees is planning to make an investment of Rs. 40,000 for a period of 4 years and the expected…

A: Capital budgeting is a financial process of evaluating capital investments in long-term projects. It…

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: How much was initially invested if the value of the investment is at P200,000O after 3 and a half…

A: Present value is referred to as the present worth of the investment amount which is discounted at an…

Q: g) Find the present value of Ugx 120,000 payable in 5 years' time, assuming that an investment rate…

A: Using the PV function

Q: The rate of return on an investment of $1500 that doubles in value over a 4-year period, and…

A: We will use the NPER formula in excel =NPER(rate, pmt,pv,-fv,type) where NPER is the number of…

Q: What amount of cash must be invested today in order to have $60,000 at the end of one year assuming…

A: The question is based on the concept of Financial management.

Q: An investment is expected to produce the following annual year-end cash flows:year 1: $5,000 year 4:…

A: Net Present Value (NPV) is the calculation of present value of net cash inflows from the investment…

Q: What is the payback period of a £40000 investment with the following cash flows? Year CF 1 £20000 2…

A: The payback period refers to the amount of time it takes to recover the cost of an investment. In…

Q: r a $10,000 investment that w

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: What amount of cash would result at the end of one year, if $15,000 is invested today and the rate…

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: Invest $7,000 today, receive $2,000 in year 1, $4,000 in year 2, and $8,000 in year 3. o Calculate…

A: Year 0 cash flow = - $7000 Year 1 cash flow = $2000 Year 2 cash flow = $4000 Year 3 cash flow =…

Q: 5-8 present and future values of a cash flow stream.An investment will pay $100 at the end of each…

A: Present value  The current amount of money that will be collected in the future in the form of one…

Q: A sum of $5000 is invested at an interest rate of 9% per year, compounded continuously.(a) Find the…

A: Compounding is a technique through which FV of present amount is computed by using appropriate rate.

Q: An investment of $80,000 yields a net income of $10,000 per year. How many years does it toke to…

A: Data given: Investment = $80,000 Net income = $10,000 per year Nominal interest rate = 6.5%…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.