(algorithmic)Choose the closest answer below.O Points: 0 of 1KIf you invest $4,874 in a long-term venture, you will receive $1,035 per year forever. Assuming your interest rate is 11%per year, what is the capitalized worth of your investment?OA. The capitalized worth of your investment is $4,764.OB. The capitalized worth of your investment is $4,535.OC. The capitalized worth of your investment is $3,934.OD. The capitalized worth of your investment is $3,942.Save

Formula to calculate the capitalized worth of investment is:CW = A/iwhere CW is the capitalized…

If you invest $4,874 in a long-term venture, you will receive $1,035 per year forever. Assuming your interest rate is 11% per year, what is the capitalized worth of your investment? Choose the closest answer below. OA. The capitalized worth of your investment is $4,764. OB. The capitalized worth of your investment is $4,535. C. The capitalized worth of your investment is $3,934. OD. The capitalized worth of your investment is $3,942.

If you invest $4,874 in a long-term venture, you will receive $1,035 per year forever. Assuming your interest rate is 11% per year, what is the capitalized worth of your investment? Choose the closest answer below. OA. The capitalized worth of your investment is $4,764. OB. The capitalized worth of your investment is $4,535. C. The capitalized worth of your investment is $3,934. OD. The capitalized worth of your investment is $3,942.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5PA: Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated...

See similar textbooks

Similar questions

K You have been offered a unique investment opportunity. If you invest $11,300 today, you will receive $565 one year from now, $1,695 two years from now, and $11,300 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 5.7% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 1.7% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 5,7% per year? If the cost of capital is 5.7% per year, the NPV is $. (Round to the nearest cent.)
1. 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.)
You are considering an investment with the following characteristics. The investment will cost you $551 today, but will pay you annual benefits of $107 for 11 years starting at the end of the first year. The relevant opportunity cost of capital is 9%. What is the NPV of this investment? Round your answer to two decimals. Enter negative values with a - sign. Don't enter the $-symbol as part of your answer.
Suppose you have a financial investment opportunity for which if you invest $2,000 today, you will receive $100 per year for 3 years plus $2,500 in the third year. Is this worthwhile in financial terms if the interest rate on the best alternative use of the funds is 10% How would I plug this into a finacial calculator? usin N, I/Y, PV, PMT,FV
You are thinking about investing in a project that will provide you a cash flow of $78922 in 3 years and of $88519 in 4 years. If your required return on investments of this risk is 15.14%, how much are you willing to pay for this opportunity? Round to 2 decimal places. Include a dollar sign ($) or percent (%) as appropriate. Answer:
You have an opportunity to invest $50,100 now in return for $59,800 in one year. If your cost of capital is 8.2%, what is the NPV of this investment? The NPV will be $_______ (Round to nearest cent)
You have been offered a unique investment opportunity. If you invest $8,900 today, you will receive $445 one year from now, $1,335 two years from now, and $8,900 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 6.7% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.7% per year? Should you take it now?
You have been offered a unique investment opportunity. If you invest $9,500 today, you will receive $475 one year from now, $1,425 two years from now, and $9,500 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 5.2% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 1.2% per year? Should you take it now? C a. What is the NPV of the opportunity if the cost of capital is 5.2% per year? If the cost of capital is 5.2% per year, the NPV is $. (Round to the nearest cent.) Should you take the opportunity? (Select from the drop-down menu.) You take this opportunity. b. What is the NPV of the opportunity if the cost of capital is 1.2% per year? If the cost of capital is 1.2% per year, the NPV is $ Should you take it now? (Select from the drop-down menu.) You take this opportunity at the new cost of capital. (Round to the nearest cent.)
K You have been offered a unique investment opportunity. If you invest $8,300 today, you will receive $415 one year from now, $1,245 two years from now, and $0,300 ton years from now a. What is the NPV of the opportunity if the cost of capital is 6.4% per year? Should you take the opportunity b. What is the NPV of the opportunity if the cost of capital is 2.4% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 6.4% per year? If the cost of capital is 6.4% per year, the NPV is $ (Round to the nearest cent)
You are offered an investment that will pay you GH¢ 200 in one year, GH¢ 400 the next year, GH¢ 600 the next year and GH¢ 800 at the end of the next year. You can earn 12 percent on very similar investments. What is the most you should pay for this one? A. Ghc 508.41 B. GHC 1,432.93 C. Ghc 2,000 D. Ghc 1,300
You have been offered a unique investment opportunity. If you invest $8,800 today, you will receive $440 one year from now, $1,320 two years from now, and $8,800 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 6.6% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.6% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 6.6% per year? If the cost of capital is 6.6% per year, the NPV is $ (Round to the nearest cent.)
Your friend told you about an NFT (Non-fungible Token) that they think will be worth $856 in 6 years. If your required return on investments of this risk is 21.75, what is the most you should be willing to pay for it today? Round to 2 decimal places. Include a dollar sign ($) or percent (%) as appropriate. Answer: