You are contemplating investing some surplus funds and the following options are available: 1. Invest $50,000 @ 4% p.a. compounded annually for 5 years. 2. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years. 3. Invest $40,000 4.5% p.a. compounded semi-annually for 5 years. 4. Invest $50,000 @ 3% p.a. compounded semi-annually for 5 years. 5. Invest $55,000 @ 0.5% p.a. compounded weekly for 5 years Which one of the above is the second-best option?
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- You are contemplating investing some surplus funds and the followingoptions are available: Show manual computation1. Invest $50,000 @ 4% p.a. compounded annually for 5 years.2. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years.3. Invest $40,000 @ 4.5% p.a. compounded semi-annually for 5 years.4. Invest $50,000 @ 3% p.a. compounded semi-annually for 5 years.5. Invest $55,000 @ 0.5% p.a. compounded weekly for 5 yearsWhich one of the above is the second-best option?You are contemplating investing some surplus funds and the following options are available: Invest $50,000 @ 4% p.a. compounded annually for 5 years. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years. Invest $40,000 @4.5% p.a. compounded Semi-annually for 5 years. Invest $50,000 @ 3% p.a. compounded Semi-annually for 5 years. Which one of the above is the Second-best option? and why?You will receive the following cash flows at the end of each year for the next 5 years. Year 1: $1,500; Year 2: $3,500; Year 3: $9,500; Year 4: $0; Year 5: $1,500. You can invest the money at an annual return rate of 8%. What is the present value of this stream of future cash flows? Group of answer choices $12,325.07 $12,951.86 $13,033.53 $13,988.00
- You are contemplating investing some surplus funds and the followingoptions are available:1. Invest $50,000 @ 4% p.a. compounded annually for 5 years.2. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years.3. Invest $40,000 @ 4.5% p.a. compounded semi-annually for 5 years.4. Invest $50,000 @ 3% p.a. compounded semi-annually for 5 years.5. Invest $55,000 @ 0.5% p.a. compounded weekly for 5 yearsWhich one of the above is the second-best option?You are contemplating investing some surplus funds and the following options are available: 1 . Invest $50,000. @ 4% p . a . compounded annually for 5 years. 2 . Invest $45,000. @ 3% p . a . compounded quarterly for 5 years. 3 . Invest $40,000. @ 4.5% p . a . compounded semi - annually for 5 years. 4 . Invest $50,000. @ 3% p . a . compounded semi - annually for 5 years. 5 . Invest $55,000. @ 0.5% p . a . compounded weekly for 5 years. Which one of the above is the second - best option?An investment pays $200 at the end of Year I. $250 at the beginning* of Year 2. $387 at the end of Year 4. and $500 at the beginning of Year 6. If other investments of equal Mk earn 7.5% annually. what will be this investments present value and future value?
- determine the size of the payments that must be made to a sinking fund in order to accumulate $233,188 if the interest rate is 5.25% compounded quarterly and payments are made for 7 1/4 years. Use TVM solverA. Which of the following investments is worth the most to a rational investor, and why? Assume the appropriate discount rate is 10% and that, unless indicated otherwise, all cash flows are to be received at the end of the year. i) Year 1 cash flow: $100 Year 2 cash flow: $500 Year 3 cash flow: $400 Year 4 cash flow: $300 Year 5 cash flow: $600 $100 per year to be paid forever, growing at 3% annually $300 to be received at the beginning of each year for five ii) iii) years, starting today iv) $600 invested today for a five year term $2,000 lump sum to be received in six years' time $325 to be received each year for five year vi)An investment will pay $600 at the end of each of the next 2 years, $700 at the end of Year 3, and $1,000 at the end of Year 4. What is its present value if other investments of equal risk earn 6 percent annually? a. $1,821.82 b. $1,913.83 c. $2,297.07 d. $2,479.86 e. $2,735.85
- In order to accumulate $500,000 after 25 years, calculate the amounts that must be invested at the end of each year, if the invested funds earn: a. 6% compounded annually. (Round your answer to the nearest cent.) PMT $. b. 7% compounded annually. (Round your answer to the nearest cent.) PMT $4 c. 8% compounded annually. (Round your answer to the nearest cent.) PMT $. d. 9% compounded annually. (Round your answer to the nearest cent.) PMT $. In each case, also calculate the total earnings. (Round your answers to the nearest cent.) a. Earnings portion 24 b.Earnings portion c. Earnings portion 24 d. Earnings portion %24 %241. $1500 is invested semi-annually for 3 years into a fund that pays 6.8% per year, compounded semi- annually. Which are the correct values for PMT, i, and n?Juliana is considering an investment proposal with the following cash flows: Initial investment-depreciable assets $55,000 Net cash inflows from operations (per year for 10 years) 11,000 Disinvestment 0 a. Determine the payback period. Round your answer to one decimal place; for example, enter 1.4 for 1.44 or 1.5 for 1.45. Answer years For parts b. and c., round your answers to three decimal places if applicable. For example, enter 0.084 for 0.0844 or 0.085 for 0.0845. b. Determine the accounting rate of return on initial investment. Answer c. Determine the accounting rate of return on average investment.
