6,986 today and it will generate $9,412 in a year. You would have extra idle fund of $2,935 after the investment. The ave

Q: pected to generate fixed annual cashflows for 4 years beginning in 3 years from today. If the…

A: Present value is the equivalent value of the future cash flow today based on timing and interest…

Q: ou are considering an investment opportunity that yields $520 one year from today, $900 in two…

A: PV = sum of (Cashflow/(1+r)^1 +.......Cashflow/(1+r)^n)

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Q: A security that costs $89.90 will provide a return of 6.5 percent per year. If you want to keep the…

A: PV=today cost=$89.90FV=Future value=$143.80Interest rate=r=6.5%Required to find out the period…

Q: What is the most you would be willing to pay for an investment that will pay you $537 in one year,…

A:

Q: An investor wants a real rate of return i′ of 6% per year. If the expected annual inflation rate for…

A: Interest rate: It can be defined as a rate at which the interest is being charged by the lender from…

Q: You invest in a project that is expected to generate fixed annual cashflows for 4 years beginning in…

A: The movement of funds into and out of a financial system or firm over a predetermined length of time…

Q: A project has two possible outcomes. The good outcome returns $8,000 next year and occurs 88% of the…

A:

Q: An investor has to decide how much he will be willing to pay for an investment that generates the…

A: The present value of future cash flows will be helpful in finding out the total investment which is…

Q: a) You invest 155 000 TL for a year. At the end the year, you have 174 375 TL net in your account.…

A: We will apply the formula to calculate the real interest rate using the nominal interest rate and…

Q: If an investment project costs a firm £200 and yields a stream of profits of £100 per year for the…

A: Internal rate of return(IRR) is one of the techniques of capital budgeting that take into…

Q: You have an opportunity to invest $50,400 now in return for $60,100 in one year. If your cost of…

A: Net Present value equal to present value of cash flow minus initial investment

Q: Your investment will pay you the following cash flow stream: YEAR | CASH FLOW 1 |200 2 10 3 100 4…

A: The time value of money is a concept in finance that takes into account the effect of compounding to…

Q: You have an opportunity to invest $49,200 now in return for $60,900 in one year. If your cost of…

A: Net Present Value(NPV) is one of the modern techniques of capital budgeting which considers the time…

Q: Suppose you have an investment offer that guarantees an average investment gain of $1,000 per year.…

A: The average rate of change describes the rate at which one quantity changes in relation to another.…

Q: $5000 to invest for 1 year

A: Fund A has a 4% annual return.To calculate the return, use the formula: Return = Principal ×…

Q: You are presented with an investment opportunity that will give you the following stream of cash…

A: Cash flow (0 to 4 years ) = $0Cash flow (Until year 14  ) = $2,000Cash flow (Until year 20 ) =…

Q: If PV=$100, i=2%, n=5 years, and the investment compounds annually, what is the equation for Future…

A: Given Information: Present Value (PV) : $ 100 Rate (i) : 2 % Time Period (n) : 5 years

Q: $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn…

A: The value of money at present is known as the present worth of the money while the value of money in…

Q: What will be the better option, receive 100,000 now or receive 250,000 six years from now? The…

A: To find out the better option we need to calculate the present value of 250,000 by using below…

Q: A project will double your investment in one year with probability 0.58, otherwise you'll lose half…

A: Standard deviation of stock is computed as follows:-Standard deviation of stock = whereR= returnER=…

Q: One investment plan that you can buy on 1st December 2020 promises to give you certain payment of…

A: The cash flow diagram is the representation of the company's cash flow graphically. The minus sign…

Q: An investment of $70,000 yields a net annual income of $15,000 for 6 years. What is the internal…

A:

Q: You have an opportunity to invest $106,000 now in return for $79,300 in one year and $29,100 in…

A: Data given: Initial Investment ($) = 106,000 Cash flow(Year 1) = $ 79300 Cash flow (Year 2) = $…

Q: If you invest $5,000 today, you will receive $1,000 in a year, $1,500 each in year 2 and year 3, and…

A: Calculate the net present value as follows:

Q: If a particular investment will pay $500, 5 months from now, and an additional $500, 9 months from…

A: Present value of future amount is computed as follows:-PV= wherePV= present valueFV = future valuer=…

Q: A project has a rate of return of 23%. What is the future value of the project if the investment…

A: Future value is the future worth of cash flows that have occurred in the present or past.

Q: ket has an expected return of 9% per year with a standard deviation of 25%. You have designed a…

A: Probaility is very important in stock where uncertainty is very high probability show chance of…

Q: An investment requires 15,000 today and produces a yearly cash flow of 700 in perpetuity. Cash flow…

A: Here, Investment today is 15,000 Yearly Cash Flow is 700 in perpetuity Growth Rate is 3%

Q: You ́re considering an investment that you expect will produce an 9% return next year, and you…

A:

Q: An alternative investment product of gorilla glue is expected to generate cash flows of 81,000 every…

A: Cash flow in every 3 years (C = $81,000 Effective annual rate (EAR) = 0.072 Value today of…

Q: Your firm is considering an investment that will cost $750,000 today. The investment will produce…

A: Initial Cost = $750,000Cash Flow for year 1 = cf1 = $250,000Cash Flow for Year 2, 3 and 4 = cf =…

Q: An investment has a cost of $3500. The investment will have a payout of X at the end of the first…

A: Time value of money’s concept suggests that money’s worth changes as time passes and this happens as…

Q: An investment will pay ¥13,400 in five years.  What is the present value of this investment today…

A: Present value is calculated by discounting the future cash flow at the discount rate.   Present…

Q: You put up K500 at the beginning of the year for an investment. The value of the investment grows 4%…

A: The return a shareholder makes on a financial asset while the asset is held is known as the holding…

Q: An investment costs $4,000 today. This investment is expected to produce annual cash flows of…

A: Initial Investment = $4,000Cash Flows:Year 1: $1,200Year 2: $1,400Year 3: $1,300Year 4: $1,100We can…

Q: You are looking to invest in a project. The expected return of 5% is used as the discount rate. The…

A: Discount Rate = 5℅ Initial Investment = P6,000,000

Q: Suppose you are offered an investment opportunity that will pay $2,500 in five years if you invest…

A: We need to use equation below to calculate the annual rate of return of investment.WhereFVn = future…

Q: An investment, which is worth $57,023.00 and has an expected return of 17.00 percent, is expected to…

A: Investment = $57,023Expected rate of return = 17%Annual Cash Flow = Investment × Expected rate of…

Q: Consider an investment that costs 100,000 and has a cash inflow of 30,000 every year for 5 years.…

A: Given Information, Initial Cost =100,000 Cash Inflow = 30,000 Annually  Time Period =5 years…

Q: You have an opportunity to invest $ 108 000 now in return for $ 79500 in one year and $ 30 comma 300…

A: The objective of this question is to calculate the Net Present Value (NPV) of an investment…