9850A= 3750-10%1237 8 910 year3% per year6% per year9% per yearExercise:1. Find Po

The question based on the concept of present value with discrete and declining cashflows and…

Answered: 9850 A= 3750 -10% 1 2 3 7 8 9 10 year…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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What is the effective annual rate for 18 percent compounded semi-annually? O 18.81% O None of the listed items is correct O 19.25% O 9.00% O 39.24% A Moving to another question will save this response. Mac SC 20 F3 F1 F2 O00 F4 F5 #3 % 4. R.
$616.96 Que What regular investment, made at the end of every three months and earning 10% compounded quarterly. would accumulate to $475,000 in 20 years? a $7,856.83 O b $17,616.21 Ос $3,492.86 ○ d $1,912.37 O e $7,916.67
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9. Problem 11.02 (IRR) dofice eBook Project L costs $54,779.63, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places. %
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nces Mc raw Mill Exercise 5-5 (Algo) Solving for unknowns; single amounts [LO5-4] For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (i= interest rate, and n = number of years) (FV of $1. PV of $1. FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) 1. 2. 3. 4. 5. Present Value Future Value $ $ $ $ i $ 80,000 4.5% 31,841 $ 94,000 15,762 $ 50,000 84,482 $ 200,000 13,291 8.0% 9.0% n 9 16 10 15
9. 8 7 4 1 End of Year 2000 1800 1600 1400 2,194 2,194 2,194 2,194 Revenue 286 286 286 286 Expenses 500 500 500 150 100 50 Costs For an interest rate of 10% per year and using the minimum number of factors Calculate the Future Worth LO
You are concerned about whether your savings and investments are adequate to meet your retire you saved $1,500 and believe you can increase that at 5% per annum for the next 15 years. Assi an 8% return on your investment, how much would you accumulate by the end of the 15th year? EXCEL NOTATION PV A Year 1 = A(1+ g) = 1 r 9 MATH FORMULA n 9 n YOUR INPUTS
Payback period and discounted payback period (Using 5% Rate of Return) Initial investment is 600,000
ces Year 0 1 Cash Flow (A) -$430,000 41,500 2 64,500 3 81,500 4 545,000 Cash Flow (B). -$ 42,500 20,900 12,800 21,100 17,900 The required return on these investments is 10 percent. a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e. d. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161. e. Based on your answers in (a) through (d), which project will you finally choose? a. Project A Project B b. Project A Project B years years Q Search < Prev 5 of 5 Next L
ye тин 6 Note Solve all insurance QNO! operation total P₂ Solve full 13 -A project capatalized for in depredade invested earn PSoroso assets will annual in 10 years 90009 Cost the income first esch Componey expects to earn is year, will cost The and mes maintenance faxes and full accurate a uniform of p19, 249 costs of 4% of the year. If the its capital Justify you 12% before income taxes. investment worthwhile? Answer
#3 HE Year Project A Project B 0 -$20,000 -$23,000 1 2 3 15,200 5,900 2,100 14,300 8.100 7,100 Suppose the company uses the NPV rule to rank these two projects. Which project should be chosen if the appropriate discount rate is 15 percent?

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9850 A= 3750 -10% 1 2 3 7 8 9 10 year 3% per year 6% per year 9% per year Exercise: 1. Find Po