You put up K500 at the beginning of the year for an investment. The value of the investment grows 4% and you earn a dividend of K35.0 Your yield is?
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- You put up K500 at the beginning of the year for an investment. The value of the investment grows 4% and you earn a dividend of K35.0 Your yield is?
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- Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%After 10 years, you managed to obtain a 7% average annual return on your investment portfolio. His starting capital was $ 50,000 and he is now worth $ 98,358. If inflation during the period averaged 2.5% per year, what was your net gain from inflation?
- You have found an investment opportunity that will provide annual cash flows of $1,234 for 5 years and costs $6789 today. If the required return is 12%, what is the profitability index for this opportunity?You have two opportunities to invest $5,000 for 10 years. The first provides a yield of 8% annually, compounded quarterly. The second provides a yield of 8.5% annually, compounded annually. Which of these investments provides the highest returns? By how much?DeltaCo has a payout ratio of 0.6 and it reinvests the remainder of earnings in new projects. If next year's EPS (EPS1) will be $7.18, new projects have expected return of 15%, and investors require a rate of return is 10.8%, what is the present value of the firm's growth opportunities? Round your answer to the nearest penny.
- You have an opportunity to invest $50,000 now in return for $60,000 in one year. If your cost of capital is 8.0%,what is the NPV of this investment?Suppose you have an investment offer that guarantees an average investment gain of $1,000 per year. (a) What is the average rate of change (in dollars per year) of this investment? $? per year (b) If the value of the investment today is $10,000, what will be the value (in dollars) of the investment in 2 years? $?You are considering investing $2,000 into the stock market. In the first 3 years, you are expecting to earn $500 per year. In years 4 and 5, you are expecting great gains of $1000 each year. For this investment, you would like a discount rate of 10% and you are assuming an inflation rate of 4%. Using the discounted cash flow approach: What would be your NPV after 5 years? What is the profitability index for this investment? Should you do the investment?
- You have an opportunity to invest $107,000 now in return for $79,700 in one year and $29,800 in two years. If your cost of capital is 8.7%, what is the NPV of this investment? The NPV will be (Round to the nearest cent.)You have an opportunity to invest $100,000 now in return for $80,000 in one year and $30,000 in two years. If your cost of capital is 9.0%, what is the NPV of this investment?You have an opportunity to invest $104,000 now in return for $80,300in one year and $30,300 in two years. If your cost of capital is 8.8%, What is the NPV of this investment? $________________________ (Round to the nearest cent.)
