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What amount of cash would result at the end of one year, if $15,000 is invested today and the rate of return is 8%?                           A) $16,200                           B) $13,889                           C) $15,000                           D) $1,200

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? $?

What is the rate of return on an investment of $10,606 if the company will receive $2,000 each year for the next 10 years? Please show work.

A company has two investment possibilities, with the following cash inflows: If the firm can earn 7 percent in other investments, what is the present value of investments A and B? If each investment costs $4,000, is the present value of each investment greater than the cost of the investment?

A business is planning to purchase a piece of equipment that will produce a continuous stream of income for 8 years with rate of flow f(t) = 9,000. If the continuous income stream earns 6.9%, compounded continuously, what single deposit into an account earning the same interest rate will produce the same future value as the continuous income stream? (This deposit is called the present value of the continuous income stream.) What is the future value of the investment? (Round to the nearest dollar as needed.)

Jack Sprat Inc. wants to know if they invest 11,548 in new exercise equipment, plus $2.000 for installation. how long before they will receive their initial invest back from future cash flows? What is the payback period for the initial costs? Projected Cash flows Year 1: 5,000 Year 2: 7,000 Year 3: 4,000 Year 4: 1,000 Post your answer as number of years with 2 decimal places, for example 5.55

Assume that an industrial building can be purchased for $1,500,000 today, is expected to yield cash flows of $80,000 for each of the next five years (with the cash flows occurring at the end of each year), and can be sold at the end of the fifth year for $1,900,000. Calculate the internal rate of return (IRR) for this transaction. 6.78% O 10.37% O 9.73% O 344%

An investment is expected to produce the following annual year-end cash flows:year 1: $5,000 year 4: $5,000year 2: $1,000 year 5: $6,000year 3: $0 year 6: $863.65The investment will cost $13,000 today.a. Will this investment be profitable?b. What will be the IRR (compounded annually) on this investment?c. Prove your answer in (b) by showing how much of each year’s cash flow is the recovery of the $13,000 investment and how much of the cash flow is return on investment. (Hint: See Concept Box 3.2.)

A business is planning to purchase a piece of equipment that will produce a continuous stream of income for 8 years with rate of flow f(t) = 9,000. If the continuous income stream earns 6.65%, compounded continuously, what single deposit into an account earning the same interest rate wi produce the same future value as the continuous income stream? (This deposit is called the present value of the continuous income stream.) What is the future value of the investment? $ (Round to the nearest dollar as needed.) What is the present value of the investment? (Round to the nearest dollar as needed.)

Suppose a company could invest in a machine that would be able to produce $1,000,000 worth of saleable merchandise in one year, $2,000,000 for another two years then $1,000,000 for another three years.  If the required rate of return for the company is 8%, what is the value of the machine's future cash flows to the company today?

Consider the accompanying shown cash-flow diagram. Solve, a. If P = $1,000, A = $200, and i% = 12% per year, then N = ? b. If P = $1,000, A = $200, and N = 10 years, then i = ? c. If A = $200, i% = 12% per year, and N = 5 years, then P = ? d. If P = $1,000, i% = 12% per year, and N = 5 years, then A = ?

Your company is planning to purchase a new log splitter for its lawn and garden business. The new splitter has an initial investment of $204,000. It is expected to generate $30,000 of annual cash flows, provide incremental cash revenues of $125,080, and incur incremental cash expenses of $70,000 annually. What is the payback period and accounting rate of return (ARR)? Round your answers to 1 decimal place. Payback period fill in the blank 1 years ARR fill in the blank 2%

Your company is planning to purchase a new log splitter for its lawn and garden business. The new splitter has an initial Investment of $225,000. It is expected to generate $30,000 of annual cash flows, provide incremental cash revenues of $174,350, and Incur Incremental cash expenses of $110,000 annually. What is the payback period and accounting rate of return (ARR)? Round your answers to 1 decimal place. Payback period ARR years

Question 1: A company invested $ 800,000 in a project, if the interest rate is 12% per year compounded quarterly, find the quarterly income required to recover the investment in 3 years? Question 2: How long would it take for a present investment to double in value at an interest rate of 1.5% per month compounded continuously? Question 3: 1. Consider the following cash flow diagram. What is the value of X if the present worth of the diagram is $400 and the interest rate is 15% compounded annually? 1 X X 2 3 200 Question 4: a. A young engineer calculated that monthly payments of $A are required to pay off a $5,000 loan for n years at i% interest, compounded annually. If the engineer decides to borrow $10,000 instead with the same n and i%, what will be her monthly payments to ensure both methods are the same? b. What is the effective annual interest rate if the nominal annual interest rate is 24% per year compounded monthly?

The cash-flow diagram is provided a. If P = $1,000, A = $200, and % = 15% per year, then N= ? b. If P=$1,000, A= $200, and N=8 years, then i =? c. If A = $200, 1% = 15% per year, and N=4 years, then P=? d. If P= $1,000, /% = 15% per year, and N=4 years, then A= ? Consider the accompanying cash-flow diagram Click the icon to view the interest and annuity table for discrete compounding when /= 15% per year a. The number of years equals years (Round up to the nearest whole number). b. The interest rate equals % (Round to two decimal places) c. The present equivalent amount (P) equals S d. The annual payment amount (A) equals $ (Round to the nearest cent) (Round to the nearest cent)

Consider a project with an initial investment (today, t = 0) of $225,000. This project will generate cash flows of $68,750 per year for the next 6 years. The company will pay $50,000 to another for clean-up and disposal in Year 6. What is the Profitability Index (PI) of the project if shareholders demand 8.25% return? Answer in whole numbers, rounded to three decimal places.

What is the PI for this financial accounting question?