a. A'(P) = (Type an exact answer in terms of e.) b. A'(4000) = (Round to the nearest cent as needed.) Interpret A'(4000) = 1.52 O A. The future value of a 13 vear investment of $4001 will be $ more than the future value of a 13 year investment of $4000. O B. The future value of a 13 year investment of $4000 will be $ more than the future value of a 13 year investment of $4000. O C. The future value of 12 year investment of $4000 at 4.5% will be $ more than the future value of a 12 year investment of $4000 at 3.5%. O D. The future value of a 12 year investment of $4001 will be $ more than the future value of a 12 year investment of $4000. c. A(4001) - A(4000) = dollars per year. (Round to the nearest cent as needed.)

a. A'(P) = (Type an exact answer in terms of e.) b. A'(4000) = (Round to the nearest cent as needed.) Interpret A'(4000) = 1.52 O A. The future value of a 13 vear investment of $4001 will be $ more than the future value of a 13 year investment of $4000. O B. The future value of a 13 year investment of $4000 will be $ more than the future value of a 13 year investment of $4000. O C. The future value of 12 year investment of $4000 at 4.5% will be $ more than the future value of a 12 year investment of $4000 at 3.5%. O D. The future value of a 12 year investment of $4001 will be $ more than the future value of a 12 year investment of $4000. c. A(4001) - A(4000) = dollars per year. (Round to the nearest cent as needed.)

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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Find the total value TV of the given income stream and also find its future value FV (at the end of the given interval) using the given interest rate. HINT [See Examples 4, 5.] (Round your answers to the nearest cent.) R(t) = 50,000, 0 < t < 5, at 10% TV - $189539.34 FV = $305255 Submit Answer X × 12
5. Solve the following two independent scenarios: A. How much must be invested now to receive $30,000 for 10 years if the first $30,000 is received one year from now and the rate is 8%? Future Value PV FV Tables Factor Present Value ? ? ? PLEASE NOTE: All FV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to whole dollars (i.e. $12,345). Using the appropriate EXCEL spreadsheet, the answer = ? PLEASE NOTE: The dollar amount will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). B. Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate? Future Value PV FV Tables Factor Net Present Value ? ? ? PLEASE NOTE: All FV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to whole dollars (i.e.…
3
Hel What amount of cash would result at the end of one year, If $14,000 Is Invested today and the rate of return Is 12%? (PV of $1 and PVA of $1) (Use approprlate factor(s) from the tables provlded. Round your answer to the nearest dollar.) Multiple Choice $15,680 $14.000 $15.540 $12,320
K You have been offered a unique investment opportunity. If you invest $11,300 today, you will receive $565 one year from now, $1,695 two years from now, and $11,300 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 5.7% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 1.7% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 5,7% per year? If the cost of capital is 5.7% per year, the NPV is $. (Round to the nearest cent.)
The gain from a project is equally likely to have any value between -$0.15 million and + $0.85 million. What isthe 99% value at risk?A) $0.145 millionB) $0.14 millionC) $0.13 millionD) 50.10 million
How I resolve this problems please give me the detail A firm has the following investment alternatives: Year A B C 1 $400 $--- $---- 2 400 400 ---- 3 400 800 ---- 4 400 800 1,800 Each investment cost of capital is 10 percent a. What is each investment's internal rate of return? b. Should the firm make any of theses investment? C. What is each investemtn's net present value? d. Should the firm make any of these investment
An investment under consideration has a payback of seven years and a cost of $884,000. Assume the cash flows are conventional. If the required return is 11 percent, what is the worst-case NPV? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
go.3
# 2: An investment will pay $100 at the end of each of the next 3 yrs, $200 at the end of yr 4, $300 at the end of yr 5, and $500 at the end of yr 6. If other investments of equal risk earn 8% annually what is FV1?
(3) Today you have paid $275 for an investment that pays $100 in one year, $500 in two years,and $X in 4 years. Assuming the market interest rate is 100% and the net present value of theinvestment is zero, what must be true about X?(a) X is greater than $2,500(b) X is greater than or equal to $2,000 but less than $2,500(c) X is greater than or equal to $1,500 but less than $2,000(d) X is greater than $1,200 but less than $1,500(e) X is less than or equal to $1,200
Assume an investment is priced today at $5,000 and has the following income stream: Year Cash Flow 1 123 2 3 4 $ 1,000 - 2,000 3,000 3,000 Would an investor with a required rate of return of 15 percent be wise to invest at a price of $5,000? Multiple Choice No, because the investment has a net present value of - $1,139.15. No, because the investment has a net present value of - $1,954.91. Yes, because the investment has a net present value of $1,069.66. Yes, because the investment has a net present value of $1,954.91. An investor would be indifferent between purchasing and not purchasing the above investment at the stated price.

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