You have an opportunity to invest $109,000 now in return for $79,500 in one year and $29,900 in two years. If your cost of capital is 8.8%​, what is the NPV of this​ investment? The NPV will be  $__________________ ​(Round to the nearest​ cent.)

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: You are considering an investment that will cost $15,000 and generate returns of $4,000 at the end…

A: Whenever an individual or a corporation has to evaluate the investment based upon the feasibility of…

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

A: Given:   Cost of capital 6.60%     Growth rate 2.30%   Year Particulars Investment A…

Q: You are considering an investment that will cost $15,000 and generate returns of $4,000 at the end…

A: NPV is the sum of present value of future cashflows less initial investment

Q: A company is considering an investment project that would cost $10 million today and yield a payoff…

A: A company undertakes an investment with the expectation of earning profits.Also, the company expects…

Q: Please show all equations and work as needed. Make the correct answer clear. If possible, please…

A: The present value (PV) of the investment is the sum of the present value of year 1 cash flows, year…

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

A: Crossover rate:  The crossover rate is used in capital budgeting analysis exercises to demonstrate…

Q: Zoomit Corporation has a capital investment opportunity that will cost $220,000. The cash inflows…

A: Zoomit corporation  Year Cash flow 0 -220000 1 40000 2 40000 3 40000 4 40000 5 40000…

Q: You have an opportunity to invest $100,000 now in return for $79,700 in one year and $30,100 in two…

A: The net present value (NPV) is a financial metric that helps in finding out the total value of an…

Q: You have an opportunity to invest $50,400 now in return for $60,100 in one year. If your cost of…

A: Net Present value equal to present value of cash flow minus initial investment

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: You have an income of $4,000 in Period 0 and $0 in Period 1. Four different investment opportunities…

A: Given Information: Market interest 11% Income is $4000

Q: what is the present value of this investment?

A: Present Value = C x [1 – [ (1 / 1 + r)^n] / r] Here, C = Cash Flow per period i.e. $21000 r =…

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: A company has an investment project that would cost $10 million today and yield a payoff of $15…

A: If present value of future value is more than initial investment than investment is accepted.

Q: You are considering an investment opportunity that requires an initial investment of​ $50 million…

A: Calculation of NPV: Answer: Net Present Value is 15.3

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: You are evaluating a project that will cost $500,000, but is expected to produce cash flows of…

A: Cost of the project is $500,000 Annual cash flows are $125,000 Time period is 10 years Cost of…

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: You are considering the following two mutually exclusive investment opportunities. If your cost of…

A: As the projects are mutually exclusive we will only one of them and as they have unequal lives we…

Q: A risky $500,000 investment is expected to generate the following cash flows:  Year…

A: Given information: Initial investment is $500,000 Cost of capital is 10% Probability is 80%, 75% and…

Q: f you insulate your office for $29,000, you will save $2,900 a year in heating expenses. These…

A: a. Given, Saving Amount per Year = $2,900 Investment Amount = $29,000   NPV at Cost of Capital of…

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

A: IRR and NPV are two popular methods of capital budgeting analysis and choosing the best project.

Q: ABC Inc. is looking at investing in a 3-year project that will create cash inflows of $7,000 in the…

A: According to the rule, we will answer the first question only, for the remaining question, kindly…

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

A:

Q: Suppose you makes a $1,000 initial investment today, a $4,000 additional investment at the end of…

A: Money-weighted index is the internal rate of return of the investment made. The IRR is the rate at…

Q: evaluating a project that will cost $541,000​, but is expected to produce cash flows of $129,000 per…

A: NPV= Present value of cashinflows - Present value of cashoutflows.

Q: You have an opportunity to invest $104,000 now in return for $80,300 in one year and $30,300 in two…

A: NPV = Present Value of cash inflow - Present Value of cash outflow

Q: A new machine will cost $400,000 and generate after-tax cash inflows of $50,000 for 12 years. Find…

A: Cost of the machine = $400,000 After tax cash inflow of $50,000 for 12 years Opportunity cost is 11%…

Q: You are considering an investment opportunity that requires an initial investment of ​$142142…

A: Note: The numbers here are not clear so I have taken $142 million as the initial investment and $12…

Q: M& B is considering investing in Project X which requires an initial investment of P15,000. The…

A: Breakeven: It is a point at which the company will not suffer any profit or loss from either of the…

Q: A company is considering a long term investment that requires a $45.000 investment today, and then…

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

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: You have an opportunity to invest $110,000 now in return for $79,400 in one year and S29,500 in two…

A: In capital budgeting, the investment appraisal process involves the evaluation of an investment's…

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: Smolinski Company is considering an investment that will return a lump sum of $500,000 five years…

A: solution: Future Value (FV) 500000 Period (Nper) 5 Interest rate (Rate) 4% Present Value…

Q: You have an opportunity to invest $ 102,000 now in return for $79,700 in one yoar and $30,400 in two…

A: To calculate the NPV we will discount the cash inflows and than we will reduce present value of cash…

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…