You are going to choose one of two investments. Both investments cost £80000, but investment A pays £35000 a year for 4 years and investment B pays £30000 a year for five years. If your required return is 13% which should you choose? a. A because it pays back sooner b. A because its IRR exceeds 13% c. A because it has a higher IRR d. B because its IRR exceeds 13% e. B because it has a higher NPV

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: 1) You are going to choose one of two investments. Both investments cost £80000, but investment A…

A: IRR is the internal rate of return an investment generates in its lifetime expressed in annual…

Q: ou are offered an investment that will pay you GH¢ 200 in one year, GH¢ 400 the next year, GH¢ 600…

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

Q: You have an opportunity to invest $107,000 now in return for $79,700 in one year and $29,800 in two…

A:

Q: which should you

A: Net present value and internal rate of return are the capital budgeting techniques used to evaluate…

Q: u are deciding between two mutually exclusive investment opportunities. Both require the same…

A: IRR (Internal rate of return) is the rate at which present value of cash inflows is equal to present…

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: You have an opportunity to make an investment that will pay ​$100 at the end of the first​ year,…

A: Here, Cash Flow in Year 1 is $100 Cash Flow in Year 2 is $400 Cash Flow in Year 3 is $200 Cash Flow…

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: You have an opportunity to invest $100,000 now in return for $79,600 in one year and $30,300 in two…

A: Given: Year Particulars Amount 0 Initial investment -$100,000 1 Cash inflows $79,600 2 Cash…

Q: An investment offers to pay you $10,000 a year for four years. If it costs $27,980, what will be…

A: given present value    = 27980 future value a year…

Q: You have an opportunity to invest $50,100 now in return for $59,800 in one year. If your cost of…

A: Amount Invested now is $50,100 Amount returned in one year is $59,800 Cost of capital is 8.2% To…

Q: You have been offered a unique investment opportunity. If you invest $9,500 today, you will receive…

A: Given: Initial investment = $9,500 Cash in flow in year 1 = $475 Cash in flow in year 2 = $1,425…

Q: If a investment advisor promises to double your money every 7 1/2 years, you're being promised an…

A: Compound Interest Compound Interest refers to the interest generated on principal as well as on the…

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: Chris offers you an investmet where if ou investment where if you invest $1,000 today, he'll return…

A: The rate of return can be calculated as: R= (Maturity amount- Initial investment)/ Initial…

Q: You have been offered a unique investment opportunity. If you invest $9,400 today, you will receive…

A: NPV = sum of all PVs. PV = cash flow in a year * PVIF where PVIF is the present value interest…

Q: Answer the attached question

A: An IRR refers to internal rate of return that is a method of capital budgeting to evaluate the…

Q: You have three options to choose for an investment: (1) Pay 15,000 and you will receive P20,000…

A: We need to find the rate of return for all the three options Let r = Rate of return

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: You have an opportunity to invest $106,000 now in return for $79,300 in one year and $29,100 in…

A: Data given: Initial Investment ($) = 106,000 Cash flow(Year 1) = $ 79300 Cash flow (Year 2) = $…

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

A: Here, Present Value of Investment (PV) is $1,250 Future Value of Investment (FV) is $1,350 Time…

Q: You have an opportunity to invest $106,000 now in return for $80,100 in one yoar and $30.400 in two…

A:

Q: An individual decides to invest in one of two projects, A and B, which both require the same initial…

A: Here, Initial outlays of both Projects A and B = $10,000 Yields from Project A = $11,500 Number of…

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

A: Excel Spreadsheet:

Q: You are considering a safe investment opportunity that requires a $780 investment​ today, and will…

A: Investment (X) = $780 Payment after 2 years (P2) = $870 Payment after 5 years (P5) = $640 Let r =…

Q: If you invest $131,300 in a project which yields an annual return of $17,500, how many years will it…

A: Since you have asked multiple questions, we will solve the first question for you. Please answer…

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

A: The percentage return that an investor is earning from a particular investment in a particular time…

Q: If you insulate your office for $19,000, you will save $1,900 a year in heating expenses. These…

A: a.Initial Investment = $19,000Saving in heating expense = $1,900 Calculation of NPV of the…

Q: If you insulate your office for $18,000, you will save $1,800 a year in heating expenses. These…

A: Formula: NPV = Present values of cash inflows - Present values of cash outflows. Deduction of…

Q: What is the present value of the investment if the interest rate is   9 ​percent?

A: The concept of time value of money tells us that worth of money keeps on changing with passage of…

Q: You have an opportunity to invest $104,000 now in return for $79,100 in one year and $30,100 in two…

A: Solution:- Net Present Value (NPV) means the net value in today’s terms after adjusting initial…

Q: You have an opportunity to invest $50,600 now in return for $60,800 in one year. If your cost of…

A: Net Present Value(NPV) is one of the modern techniques of capital budgeting which considers the time…

Q: You are deciding between two mutually exclusive investment opportunities. Both require the same…

A: Part A  IRR for Investment A = Perpetual cash flow Initial amount invested IRR for Investment A…

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: If you invest $131,300 in a project which yields an annual return of $25,400, how many years will it…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

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: You are deciding between two mutually exclusive investment opportunities. Both require the same…

A: The internal rate of return is a capital budgeting technique that helps in calculating a discount…

Q: You have an opportunity to invest $102,000 now in return for $80,300 in one year and $29,400 in two…

A: Given Information : Amount invested = $102,000 Return in first year = $80,300 Return in second year…

Q: You have been offered an investment opportunity that pays $500 at the end of the first year, $700 at…

A: Present value of future periodic income can be calculated by using the discounting technique.…

Q: Use the formulas A = P(1 + r/n)nt and A = Pert to solve this problem. You decide to invest $6000 for…

A: Amount of investment can be calculated using the following formulae: A = P(1 + r/n)nt  A = Pert…

Q: You have recently inherited a sum of $100,000. The current market rate is 5% p.a. and you are…

A: Amount inherited = $100,000 Current Market Rate = 5% Amount expected every year indefinitely = $6000…

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…

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.