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You have $12044 to invest and want to save up $26452. You hope to earn a return of 9.5%. How long until you reach your goal?
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- If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%How much must be invested now to receive $30,000 for 10 years if the first $30.000 is received one year from now and the rate is 8%?You are going to invest $5405 in 3 years and $7923 in 6 years. If you expect to earn a return of 8.26%, how much will you have in 10 years? Answer:
- If you insulate your office for $18,000, you will save $1,800 a year in heating expenses. These savings will last forever. a. What is the NPV of the investment when the cost of capital is 4%? 10%? b. What is the IRR of the investment? (Enter your answer as a whole percent.) c. What is the payback period on this investment?If you invest $5,000 today, you will receive $1,000 in a year, $1,500 each in year 2 and year 3, and $2,000 each in year 4 and year 5. If you require a 10% annual return, should you take the investment.You have an investment opportunity that requires an initial investment of $5,000 today and will pay $6,000 in one year. What is the rate of return of this opportunity? The rate of return for this opportunity is ____%.
- If you insulate your office for $16,000, you will save $1,600 a year in heating expenses. These savings will last forever. a. What is the NPV of the investment when the cost of capital is 5%? 10%?An investment will generate $10,000 a year for 25 years. If you can earn 10percent on your funds and the investment costs $100,000, should you buy it? Would your answer be different if you could earn only 7 percent?Lewis has already saved $10,000. Suppose he continues to make contributions of $500 at the beginning of each month for the next 10 years. He has a goal of having $150,000. 1. What monthly nominal rate of return must his investment earn for him to achieve his goal? 2. If the best rate in the market he can find is a 9.9% monthly nominal rate, what would be the new amount for the contributions he will have to make to still achieve his goal of having $150,000 in 10 years?
- f you insulate your office for $29,000, you will save $2,900 a year in heating expenses. These savings will last forever. a. What is the NPV of the investment when the cost of capital is 5%? 10%? b. What is the IRR of the investment? (Enter your answer as a whole percent.) c. What is the payback period on this investment?If you invest $56,000 today in an account that pays 8.3% a year, how much will you have in 31 years?Formula?Excel Function?You need $32,000 at the end of 10 years. If you can earn 0.625% per month, how much would you need to invest today to meet your objective? Screen reader support enabled.
