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Apr 3, 2024

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Quiz: ProblemSets sumtauz This Question: 1 pt 10f 15 (15 complete) w | p This Quiz: 15 pts possible & Suppose the interest rate is 4.1%. a. Having $600 today is equivalent to having what amount in one year? b. Having $600 in one year is equivalent to having what amount today? ¢. Which would you prefer, $600 today or $600 in one year? Does your answer depend on when you need the money? Why or why not? a. Having $600 today is equivalent to having what amount in one year? Itis equivalent to 9| . (Round to the nearest cent.) b. Having $600 in one year is equivalent to having what amount today? Itis equivalent to $| . (Round to the nearest cent.) c. Which would you prefer, $600 today or $600 in one year? Does your answer depend on when you need the money? Why or why not? "Because money today is worth more than money in the future, $600 today is preferred to $600 in one year. This answer is correct even if you don't need the money today, because by investing the $600 you receive today at the current interest rate, you will have more than $600 in one year." Is the above statement true or false? Enter your answer in each of the answer boxes. ® Quiz: ProblemSet3 sumtauiz This Question: 1 pt 4 20f15 (15 complete) w | p This Quiz: 15 pts possible a. What is the present value of the following set of cash flows, discounted at 9.8% per year? Year 1 2 3 4 5 CF $12 $24 $36 $48 $60 b. What is the present value of the following set of cash flows, discounted at 9.8% per year? Year 1 2 3 4 5 CF $60 $48 $36 $24 $12 c. Each set contains the same cash flows ($12, $24, $36, $48, $60), so why is the present value different? a. What is the present value of the following set of cash flows, discounted at 9.8% per year? Year 1 2 3 4 5 CF $12 $24 $36 $48 $60 The present value of the cash flow stream is $| . (Round to the nearest cent.) b. What is the present value of the following set of cash flows, discounted at 9.8% per year? Click to select your answer(s). O The present value of the cash flow stream is . (Round to the nearest cent.) c. Each set contains the same cash flows ($12, $24, $36, $48, $60), so why is the present value different? (Select the best choice below.) () A. The present value in part (a) is lower because the larger cash flows occur sooner. (@® B. The present value in part (b) is higher because the larger cash flows occur sooner. () C. The present value in part (b) is lower because the larger cash flows occur sooner. (O D. The present value in part (a) is higher because the larger cash flows occur sooner. v Click to select your answer(s). @

Quiz: ProblemSet3 sewmiou This Question: 1 pt 4 30f15(15complete) w | p This Quiz: 15 pts possible e You have an opportunity to invest $49,900 now in return for $59,300 in one year. If your cost of capital is 8.3%, what is the NPV of this investment? The NPV will be § . (Round to the nearest cent.) Quiz: ProblemSet3 ~ simtoui This Question: 1 pt 4 | 40f15 (15 complete) w | p This Quiz: 15 pts possible e ‘You have an opportunity to invest $105,000 now in return for $80,000 in one year and $29,700 in two years. If your cost of capital is 9.4%, what is the NPV of this investment? The NPV will be $| . (Round to the nearest cent.) This Question: 1 pt 4 | 50f15 (15 complete) w | p This Quiz: 15 pts possible o Your storage firm has been offered $100,000 in one year to store some goods for one year. Assume your costs are $95,000, payable immediately, and the cost of capital is 8.0%. Should you take the contract? The NPV will be $| . (Round to the nearest cent.) Should you take the contract? (Select from the drop-down menu.) This Question: 1 pt 4 | 60f15 (15 complete) w | p This Quiz: 15 pts possible o YYou are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $71,000 immediately. If your cost of capital is 7.3%, what is the minimum dollar amount you need to sell the goods for in order for this to be a non-negative NPV? The minimum dollar amount is $|76183|. (Round to the nearest dollar.)

Q!!-Problem-Set— This Question: 1 pt 7 of 15 (15 complete) w | p This Quiz: 15 pts possible & Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $4,640 at the end of each of the next 3 years. The opportunity requires an initial investment of $1,160 plus an additional investment at the end of the second year of $5,800. What is the NPV of this opportunity if the interest rate is 1.6% per year? Should Marian take it? What is the NPV of this opportunity if the interest rate is 1.6% per year? The NPV of this opportunity is $|6' . (Round to the nearest cent.) Should Marian take it? take this opportunity. (Select from the drop-down menu.) M-Pl'oblem-Set— This Question: 1 pt 8 of 15 (15 complete) w This Quiz: 15 pts possible o You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $4,600 and will be posted for one year. You expect that it will generate additional revenue of $690 a month. What is the payback period? The payback period is months. (Round to one decimal place.) Quiz: Problem Set _ This Question: 1 pt 90f 15 (15 complete) w | p This Quiz: 15 pts possible & You have just been offered a contract worth $1.00 million per year for 5 years. However, to take the contract, you will need to purchase some new equipment. Your discount rate for this project is 12.0%. You are still negotiating the purchase price of the equipment. What is the most you can pay for the equipment and still have a positive NPV? million. (Round to two decimal places.) The most you can pay for the equipment and achieve the 12.0% annual return is $| Qu!-Problem-Sete— This Question: 1 pt 10 of 15 (15 complete) w | p This Quiz: 15 pts possible £ YYou are considering making a movie. The movie is expected to cost $10.4 million up front and take a year to produce. After that, it is expected to make $4.9 million in the year it is released and $1.8 million for the following four years. What is the payback period of this investment? If you require a payback period of two years, will you make the movie? Does the movie have positive NPV if the cost of capital is 10.1%? What is the payback period of this investment? The payback period is years. (Round to one decimal place.) If you require a payback period of two years, will you make the movie? . (Select from the drop-down menu.) Does the movie have positive NPV if the cost of capital is 10.1%? If the cost of capital is 10.1%, the NPV is $| million. (Round to two decimal places.)

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blemSet3 ~ semaw This Question: 1 pt 4 1of15(15complete) w | p This Quiz: 15 pts possible o You need a particular piece of equipment for your production process. An equipment-leasing company has offered to lease the equipment to you for $10,100 per year if you sign a guaranteed 5-year lease (the lease is paid at the end of each year). The company would also maintain the equipment for you as part of the lease. Alternatively, you could buy and maintain the equipment yourself. The cash flows from doing so are listed below (the equipment has an economic life of 5 years). If your discount rate is 7.2%, what should you do? Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 -$40,600 -$1,900 -$1,900 -$1,900 -$1,900 -$1,900 The net present value of the leasing alternative is $ (Round to the nearest dollar.) The net present value of the buying alternative is § 9|. (Round to the nearest dollar.) What should you do? (Select from the drop-down menus.) The cost of is less, so you should the equipment. Quiz: ProblemSet3 ~ semtu This Question: 1 pt 4 120f15 (15 complete) w | p This Quiz: 15 pts possible e You are evaluating a project that will cost $474,000, but is expected to produce cash flows of $125,000 per year for 10 years, with the first cash flow in one year. Your cost of capital is 10.6% and your company's preferred payback period is three years or less. a. What is the payback period of this project? b. Should you take the project if you want to increase the value of the company? a. What is the payback period of this project? The payback period is 9| years. (Round to two decimal places.) b. Should you take the project if you want to increase the value of the company? (Select from the drop-down menus.) If you want to increase the value of the company you take the project since the NPV i: Quiz: ProblemSet3 ~ swmiz This Question: 1 pt 4 | 130f 15 (15 complete) w | p This Quiz: 15 pts possible e York Properties has a discount rate of 9% and is considering two projects. Project A has an IRR of 28% and an NPV of $32 million. Project B has an IRR of 22% and an NPV of $41 million. Which project maximizes shareholder value? Why do the two rules lead to different results? () A. Project A maximizes shareholder value. The two rules lead to different results because of the cash flow effect. @® B. Project B maximizes shareholder value. The two rules lead to different results because of the scale effect. () C. Project B maximizes shareholder value. The two rules lead to different results because of the perpetuity effect. (O D. Project A maximizes shareholder value. The two rules lead to different results because of the payback period effect.

Quiz: ProblemSet3 ~ swmtoue This Question: 1 pt 4 | 140f 15 (15 complete) w | p This Quiz: 15 pts possible o Which of the following is not an advantage of the payback method of project valuation? (O A. ltis easy to understand O B. lItfocuses on cash flows (O C. ltis easy to compute @® D. Itfully accounts for risk This Question: 1 pt 4 150f 15 (15 complete) w This Quiz: 15 pts possible e In 2018, the firm of Dewey Cheatum & Howe had an accounting rate of return (ARR) of 7%. The average investment during the year was $300,000, and the average annual operating cash inflows was $28,700. What was the dollar amount of the average annual depreciation? O A. $4,700 O B. $15,000 O €. $21,000 @® D. $7,700

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Suppose you are offered $7,100 today but must make the following payments: 1 2 Cash Flows ($) O $7,100 1-3,800 2-2,500 3 -1,600 4 -1,400 Year 4 6. 7 9. 10 11 What is the IRR of this offer? (Do not round intermediate calculations. Enter your ans 12 a. 13 14 15 16 17 b. If the appropriate discount rate is 10 percent, should you accept this offer? 18 19 multiple choice 1 20 21 Reject Ассept 22 23 24 25 C. If the appropriate discount rate is 19 percent, should you accept this offer? 26 27 multiple choice 2 28 29 Аcсept Reject 30 31 32 33 What is the NPV of the offer if the appropriate discount rate is 10 percent? (A negative ar What is the NPV of the offer if the appropriate discount rate is 19 percent? (A negative ar 34 d-1. 35 d-2. 36

If you deposit OMR 5000 in your account in a bank; if your bank pays 9.05% interest, how much will you get in 15 years? Find future value Select one: a. None of the option b. 18212.41 c. 18833.31 d. 18212.14 e. 18338.13

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uestion 1: Solve the following TVM problems using Excel formulas. You MUST use Excel formulas (FV or PV) to receive credit. ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? C. Suppose you invest $ 570 monthly. What is the future value of the investment in 29 29 years, if interest at + 5% is compounded monthly? 5 6 7 8 19 20 21 22 23 24 25 26 27 28 29 Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A 国 W X

Question 4 > You want to buy a $199,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? b) What will your monthly payments be if the interest rate is 6%? c) What will your monthly payments be if the interest rate is 7%? > Nevt Oestion

Hi expart Provide solution

Q)You are given the future value of an annuity, A, the monthly payment, R, and the annual interest rate, r. Find the number of monthly payments, n. Round your answer to the nearest whole number if necessary.A = $4000; R = $70; r = 7% Solve it correctly not use excel

I keep getting the wrong answers is there anybody that can help me answer this correctly???

EX.M.106 Use the future value tables to answer the following questions. (Click here to access the PV and FV tables to use with this problem.) Required: Round your answers to the nearest dollar. 1. What is the value on January 1, 2027, of $75,000 deposited on January 1, 2020, which accumulates interest at 14% annually? $___________ 2. What is the value on January 1, 2025, of $15,000 deposited on July 1, 2020, which accumulates interest at 16% compounded quarterly? $__________ 3. How much interest will accumulate on an investment of $10,000 left on deposit for 7 years at 8% compounded annually? $__________

NOTE: solve only 4 to 6.

Pls help sir all parts or else pls skip

Can u also answer part 2

What would you prefer to receive if the interest rate is 20%? OA. $64 one year from now B. $95 four years from now OC. $84 three years from now O D. $73 two years from now.

Need D and C please use IT-84 calculator what is N = I%= PV= PMT=FV= What are we solving for? Thank you

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