1. A rule exists, the so-called Rule of 72, for quickly estimating the number of years required for an investment to double. The equation can be expressed as ndouble = 72/i, where i is expressed as a percent (i.e., 10% would be expressed as 10). Develop a plot of time versus interest to double your investment. Overlay the actual formula, 2 = 1*(1+i)" and comment on the accuracy of this rule.

1. If you perform a NPV analysis on a perspective investment using a "d" = 15% and:       a. the NPV Is < 0, what can you tell me about the investment's IRR (time adjusted rate of return)?       b. the NPV is > 0, what can you tell me about the investment's IRR (time adjusted rate of return)?        c. the NPV is= 0, what can you tell me about the investment's IRR (time adjusted rate of return)?          2. We presume in Investment analysis that the payback method of evaluation is a better measure of.................than it is a measure of...................... We also think less of the payback method because it sometimes ignores the............., ..................of an investment since the................. the oftentimes occurs after the payback period has lapsed.        3. Please explain why we oftentimes equate EBITDA (earnings before subtracting] interest, taxes, depreciation & amortization) with NOI (net operating income) in examining business' profitability. Why don't…

Suppose you have a project that has a 0.6 chance of doubling your investment in a year and a 0.4 chance of halving your investment in a year. What is the standard deviation of the rate of return on this investment? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Answer is complete but not entirely correct. 40.99 Standard deviation %

A project has a 0.92 chance of doubling your investment in a year and a 0.08 chance of halving your investment in a year. What is the standard deviation of the rate of return on this investment? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Example 1. Compound interest When interest is compounded continuously, the rate of change of the amount x of the investment is proportional to the amount present. In this case, the proportionality constant is the annual interest rate r (as a decimal); that is, dx/dt = rx. (a) If $2000 is invested at 8%, compounded continuously, find an equation for the future value of the investment as a function of time t, in years. (b) How long will it take for the investment to double? (c) What will be the future value of this investment after 35 years?

Find the PV and FV of an investment that makes the following end-of-year payments. The interest rate is 8%. Year Payment 1 100 2 200 3 400 Rate = 8% To find the PV, use the NPV function: PV = Year Payment x (1 + I )^(N-t) = FV1      100             1.17                 116.64 2      200             1.08                 216.00 3      400             1.00                 400.00                                              Sum = ?PV = ?FV of PV = ?

answer if its true or false 1) Based on the following information calculate the value at time 2 of the investment made at time zero. This future value is equal to 113. discount time investment (years) rate 6% 100 1

Calculate a one-year holding period return (HPR) for the following two investment alternatives: Which investment would you prefer, assuming they are of equal risk? Explain. The HPR for investment X is %. (Enter as a percentage and round to two decimal places.)

Suppose that we make contributions to a fund of $125 today and $750 in twoyears for a return of $1000 in one year. First write the Net Present Value as a function of the discount factor ν. Secondly, use the NPV to calculate the yield rate of this investment (select the larger value for i. Finally, explain whether or not this is a good investment for us. Please show all work

Part a. write a function F(t)= that describes the value after t years of a $2000 investment that increases by 9% per year Part b. For your function in part a about find the value of the investment after 10 years Part C. For the function in part a, solve to find how long it would take to double your original investment. Try to solve the equation without using a graph or table. What problem do you encounter?