A friend wants to open a roller disco (why not?). This will require an investment of $40,000 from you at the end of year 1, after which time you v receive annual dividends of $10,000 at the end of each of the 7 subsequent years. All of this is shown in the table below. The blue cells are currently blank Period Number 1. 4 6. 8. 1-Oct- 1-Oct- 1-Oct- 1-Oct- 1-Oct- 1-Oct- Start of period Number 1-Oct-15 16 1-Oct-22 17 18 19 20 21 30-Sep- 30-Sep- 30-Sep- 30-Sep- 30-Sep- 30-Sep- 30-Sep 30-Sep- End of period Date 2016 17 18 19 20 21 22 23 Investment appraisal Cashflow (S40,000) $10.000 $10,000 $10,000 $10,000 $10,000 $10.000 $10,000 NPV of %24 3D cashflow Internal Rate of Return (IRR) Open Microsoft Excel and copy and paste the information from the table above into a spreadsheet (to paste as a table use the "Paste Special" feature and paste as Text. Format appropriately). Create formulas to calculate and show that: • The Net Present Value for the investment at a discount rate of 8% is $11,170.09 - The Internal Rate of Return for the investment is 16.33% Would you make this investment?

A friend wants to open a roller disco (why not?). This will require an investment of $40,000 from you at the end of year 1, after which time you v receive annual dividends of $10,000 at the end of each of the 7 subsequent years. All of this is shown in the table below. The blue cells are currently blank Period Number 1. 4 6. 8. 1-Oct- 1-Oct- 1-Oct- 1-Oct- 1-Oct- 1-Oct- Start of period Number 1-Oct-15 16 1-Oct-22 17 18 19 20 21 30-Sep- 30-Sep- 30-Sep- 30-Sep- 30-Sep- 30-Sep- 30-Sep 30-Sep- End of period Date 2016 17 18 19 20 21 22 23 Investment appraisal Cashflow (S40,000) $10.000 $10,000 $10,000 $10,000 $10,000 $10.000 $10,000 NPV of %24 3D cashflow Internal Rate of Return (IRR) Open Microsoft Excel and copy and paste the information from the table above into a spreadsheet (to paste as a table use the "Paste Special" feature and paste as Text. Format appropriately). Create formulas to calculate and show that: • The Net Present Value for the investment at a discount rate of 8% is $11,170.09 - The Internal Rate of Return for the investment is 16.33% Would you make this investment?

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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1
You want to retire in 40 years as a millionaire (i.e., to have $1,000,000). If 6% is the average rate of return on the investment during this time period, then how much should you invest per month starting at the end of this month? a. $502 b. $702 c. $802 d. $602
If $10,000 is invested in a certain business at the start of the year, the investor will receive $3,000 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 4% per year? A. $1,068 B. $890 C. $445 D. $1424
You borrowed $10,000 from a bank to invest in IT & Mobile technology with payback the loan in graduated payment plan. If your first payment is $1,000 at the end of first year and i=10% over 5 years. Note: (P/G, 10%, 5) = 6.86 Q/Find the total earned interest by the bank at the end of period?
Give typing answer with explanation and conclusion to all parts Scott opened an RRSP account and deposited $1,500 into it. She then deposited $1,000 at the end of the 1st year and $775 at the end of the 2nd year, into the account. The RRSP was earning 2.30% compounded quarterly. a. What is the accumulated value of the investments at the end of the 2nd year? Round to the nearest cent b. What is the accumulated value of the investment at the end of 6 years? Round to the nearest cent
You invested $4,800 into an account. Your balance is now $14,400. Your compound annual rate of return was 4.65%. How long ago did you open the account? Question 4 options: 25.1 years 26.4 years 24.2 years 27.6 years 28.1 years
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1 Assume an investor deposits $115,332 in a professionally managed account. One year later, the account has grown in value to $147,367 and the investor withdraws $44,209. At the end of the second year, the account value is $91,455. No other additions or withdrawals were made. Calculate holding period return during year 2. Round the answer to two decimals in percentage form. Please write % sign in the units box. Your Answer: 2 Assume an investor deposits $118,152 in a professionally managed account. One year later, the account has grown in value to $149,976 and the investor withdraws $42,343. At the end of the second year, the account value is $91,322. No other additions or withdrawals were made. Calculate holding period return during year 2. Round the answer to two decimals in percentage form. Please write % sign in the units box. Answer: Help me with both please...Asap Please do not use chatgpt or any AI tool
What is the IRR for a $1,075 investment that returns $190 at the end of each of the next 6 years?(Perform all calculations using 5 significant figures and round your answer to two decimal places): Answer: ____________%
1 Assume an investor deposits $115,332 in a professionally managed account. One year later, the account has grown in value to $147,367 and the investor withdraws $44,209. At the end of the second year, the account value is $91,455. No other additions or withdrawals were made. Calculate holding period return during year 2. Round the answer to two decimals in percentage form. Please write % sign in the units box. Your Answer: 2 Assume an investor deposits $118,152 in a professionally managed account. One year later, the account has grown in value to $149,976 and the investor withdraws $42,343. At the end of the second year, the account value is $91,322. No other additions or withdrawals were made. Calculate holding period return during year 2. Round the answer to two decimals in percentage form. Please write % sign in the units box. Answer:
Complete a,b,& c please and thank you
Complete the table by finding the balance A when $18,000 is invested at rate r for t years, compounded continuously. (Round your answers to two decimal places.) r = 8% t 10 20 30 40 50 A $ $ $ $ $

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