A company has two investment opportunities. Alternative 1 (Alt. 1) pays $9,000 (inflow) two years from now, and $20,000 (inflow) four years from now. Alternative 2 (Alt. 2) pays $6,000 (inflow) at the end of every year for five years. Interest is 5.93% compounded annually. Which is the preferable alternative? Round the values for PV to the nearest cent. TWO YEARS P/Y C/Y N I/Y PV PMT FV GA Alt. 1 = $ FA $ $ % Alt. 2 = $ $ $ $ FOUR YEARS % $ Write the Discounted Cash Flow (DCF) for Alt. 1 and Alt. 2. Enter positive values for Alt. 1, and Alt. 2, rounded to the nearest dollar. FIVE YEARS Choice Select an answer %

A company has two investment opportunities. Alternative 1 (Alt. 1) pays $9,000 (inflow) two years from now, and $20,000 (inflow) four years from now. Alternative 2 (Alt. 2) pays $6,000 (inflow) at the end of every year for five years. Interest is 5.93% compounded annually. Which is the preferable alternative? Round the values for PV to the nearest cent. TWO YEARS P/Y C/Y N I/Y PV PMT FV GA Alt. 1 = $ FA $ $ % Alt. 2 = $ $ $ $ FOUR YEARS % $ Write the Discounted Cash Flow (DCF) for Alt. 1 and Alt. 2. Enter positive values for Alt. 1, and Alt. 2, rounded to the nearest dollar. FIVE YEARS Choice Select an answer %

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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How much will $3,000 invested at the end of each year grow to in 4 years, assuming an interest rate of 11% compounded annually? Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, and PVA of $1). Multiple Choice $13,663 $14,129 О $12,729 $13,200
An investment will pay you $43,000 in 10 years. If the appropriate discount rate is 7 percent compounded daily, what is the present value? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
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A company has two investment opportunities. Alternative 1 (Alt. 1) pays $10,000 (inflow) two years from now, and $20,000 (inflow) four years from now. Alternative 2 (Alt. 2) pays $6,500 (inflow) at the end of every year for five years. Interest is 8.14% compounded annually. Which is the preferable alternative? Round the values for PV to the nearest cent. TWO YEARS P/Y C/Y N I/Y PV PMT FV $ Alt. 1 = $ % Alt. 2 = $ $ FOUR YEARS % GA SA FIVE YEARS Write the Discounted Cash Flow (DCF) for Alt. 1 and Alt. 2. Enter positive values for Alt. 1, and Alt. 2, rounded to the nearest dollar. % Choice Select an answer →
A mining investment is more likely to generate revenues of $500,000 per year for the next 10 years of service life. However, the investors think that there is a possibility that the revenues could be as high as $800,000 per year or as low $300,000 per year. The investors' MARR is 8% per year. Answer the following two questions: Click the icon to view the interest and annuity table for discrete compounding when i= 8% per month. More Info 1 Calculate the PW based on the optimistic estimate of the net annual revenues. Discrete Compounding; i= 8% ire O A. $3.36 Million Single Payment Compound Amount Uniform Series Compound Amount Factor Sinking Fund Capital Recovery Factor O B. $3.47 Million Present Worth Factor Present Worth Factor O C. $5.37 Million Factor Factor O D. $2.01 Million To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P O E. $3.58 Million F/P PIF FIA PIA A/F A/P 1 1.0800 0.9259 1.0000 0.9259 1.0000 1.0800 2. Calculate…
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