You are considering a one-year investment. If you put up $1,250, you will get back $1,350. What rate is this investment paying?

Q: Jorge is considering an investment that will pay $4,650 a year for five years, starting one year…

A: Rate of return is an expected profit on an investment by an investor. It is a rate at which investor…

Q: An investor is considering an investment that will pay $2,290 at the end of each year for the next…

A: The payment required to be made can be calculated with the help of PV function.

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: You have an investment opportunity that requires an initial investment of $5,500 today and will pay…

A: The acronym IRR stands for internal rate of return. It shows the actual return wherein the present…

Q: An investment will pay you $10,000 in 10 years and it also will pay you $400 at the end of each of…

A: An annuity refers to a series of payments that regularly made at equal intervals. Present value (PV)…

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: An investment will pay S100 at the end of each of the next 3 years, $200 at the end of Year 4, 300…

A:

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 pays you $100 at the end of each of the next 3 years. The investment will then pay you…

A: Here,

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

A: Investment cost =$45000 After tax benefits = $2000 Payback period formula: Payback period =…

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

A: Present value is also known as a present discounted value, in which the future value of cash inflows…

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: You are looking at two investment options, A and B. Investment A is a 13-year annuity that needs an…

A: Compounding: Compounding is the method through which interest is added to both the principle balance…

Q: You are offered an investment that will pay •$200 in year 1, •$400 the next year, •$600 the…

A: Time value tells that value received today is of more value than that of receiving the exact value…

Q: Consider an investment that offers $4,000, $5,000 and $6,000 in the next 3 years, with the first…

A: Present value is the concept of time value of money. Time value of money concept states that 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: Present value can be calculated by using this equation PV =FV(1+r)n where FV =Future value PV…

Q: A. You are offered an investment that will pay you $200 in one year, $400 the next year, $600 the…

A: The present value is today's value of future cash flows. It represents the discounted value of cash…

Q: An investment will generate 10,000 a year for 25 years. If you can earn 10 percent on your funds and…

A: Present value of annuity=Annuity1-1+Interest rate-Time periodRate

Q: You bought an asset for $10,000 and sold it for $20,000 after 10 years. What was the annual rate of…

A: Using excel RATE function

Q: You have an opportunity to invest $100,000 now in return for $80,000 in one year and $30,000 in…

A: The NPV is calculated as present value of cash inflows less initial investment

Q: If a RM10,000 investment will return RM25,000 to you in five years, then to the nearest percent what…

A: Investment = RM10,000 Return = RM25,000 Period = 5 Years

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: How would you set up the function in Excel to get the IRR of an investment of $22,500 over 6 years,…

A: Internal Rate of Return:  The Internal Rate of Return (IRR) is the required rate of return at which…

Q: An investment will generate $10,000 a year for 25 years. If you can earn 10percent on your funds and…

A: Calculation of net present value of the investment at 10%

Q: An investment promises to pay $6,000 at the end of each year for the next three years and $4,000 at…

A: Question 1 is the case of ordinary annuity while question 2 is the case of an annuity due as the…

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

A: Excel Spreadsheet:

Q: If you invest $73,300 in a project which yields an annual return of $13,500, how many years will it…

A: Given, Amount of investment is $73,300 Annual return $13,500. Rate of interest is 4.5%.

Q: EAR of 5% per year for any​ horizon, can you make the decision by simply comparing this EAR with the…

A: Given, Value of Investment today = $1,080            Investment today and will pay two years from…

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: You plan to buy some undeveloped land that should sell for $180,000 in three years. What is the most…

A: Present Value: The term present value is defined as the current or present day’s value of the amount…

Q: You are considering an investment of $ 1500 annually. The first payment is made now and the last…

A: Given: Annual investment = $1,500 Interest rate = 3% Periods = 4

Q: If you insulate your office for $12,000, you will save $1,200 a year in heating expenses. These…

A: Net present value is the excess of the present value of cash inflows over the present value of cash…

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: Beene Distributing is considering a project that will return $150,000 annually at the end of each…

A:

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: Marian Plunket owns her own business and is considering an investment. If she undertakes the…

A: Cash flow (Year 1 - 3) = $4440 Cash flow (Year 0) = - $1110 Cash flow (Year 2) = - $5550 Interest…

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: Formulas:

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: Tanya is considering an investment that will require an initial payment of 400,000 and additional…

A: Net present value is a discounted cash flow (DCF) method used for evaluating investment proposals.…

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

A: If an investment is able to cover the cost then we say that the investment should be accepted. But…

Q: You are looking into an investment that will pay you $12,000 per year for the next 10 years. If you…

A: Annuity refers to a series of regular payments made for a defined period. Ordinary annuity means…

Q: What is the present value of an investment that pays $190 at the end of year 1, $107 at the year of…

A: Present Value is calculate by discounting the future cash flows. Present Value = Future Cash Flows *…

Q: What is the most you would pay for this investment if you require a 10% return? answer in dollars…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.