According to the Rule of 72, what must the return on an investment be to double an initial investment of $1,000 in 7 years? Multiple Choice   10.41%   2%   8.63%   10.29%   7.2% Show all steps of calculation and formulas if necessary

Q: None

A: ### Rule of 72:- The Rule of 72 estimates the number of years required for an investment to double…

Q: Investment Perlod 1 A - $4,000 $11,000 B -20,000 33,000

A: Profitability index = Present value of cash inflow / Initial investment Investment with higher…

Q: Don't use ai and give answer

A: Present Value of Growing PerpetuityFair value is the estimated worth of an asset or investment based…

Q: Need answer this question

A: Step 1:To find the fair value of an investment that pays a growing annual payment, we can use the…

Q: Which investment(s) should you choose, considering all the above criteria, if the cost of capital is…

A: NPV: It is the present worth of the cashflows including the initial cost of investment.    IRR: It…

Q: Provide correct answer don't use ai

A: Plugging in the values: Fair Value = 100/0.08−0.03 = 100/0.05 = 2000 So, the fair value of the…

Q: Two investments have the following pattern of expected returns: Investment A Year 4 Year 1 Year 2…

A: BTIRR refers to the before tax internal rate of return is the percentage of return at which the net…

Q: The matrix below contains payoffs and their associated probabilities for four alternative…

A: We need to find the addition of probabilities with payoff matrix for all investments to find the…

Q: Determine the future worth of the series at the end of year 8. $

A: To determine the future worth of the cash flow series at the end of year 8.5, we can use the future…

Q: 9. Calculate the present value of an investment that promises to pay you $1000 after year 1, $3000…

A: Step 1 The total of future investment returns discounted at a specific level of rate of return…

Q: What is the internal rate of return (IRR) for an investment with the following cash flows? Year @12m…

A: IRR stands for Internal Rate of Return. It is a financial metric used to evaluate the profitability…

Q: PLS ANSWER ASAP The source of funds for capital investment, which would hold true for all…

A: Solution:- Minimum Acceptable Rate of Return (MARR) or cost of capital is the rate of return…

Q: The Caribou Pipeline Company projects a pattern of inflows from the investment shown in the…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Use Table 8 to answer the next two questions. Assume the committed capital is $100 the management…

A: In the field of investing and fund management, carried interest is frequently employed. It is a…

Q: None

A: To calculate future value, we can use the future value formula:FV = PV * (1 + r) ^ nwhere:FV is the…

Q: 1.Compute the geometric mean (return) and the final balance after 5 years on a $1,500 investment…

A: Geomean The returns an array's or a range of positive data's geometric mean. To determine the…

Q: What is the carried interest in 2019? O $9.85 $5.40 $9.12 $11.20

A: In the field of investing and fund management, carried interest is frequently employed. It is a…

Q: Mathew has purchased an investment for $6,805.83.. He will receive $10,000 5 years from today. What…

A: For calculating IRR we will consider the current value and initial investment amount to compute the…

Q: What is the fair value of an investment that pays $100 per year in year 1, grows at the rate of 3%…

A:

Q: You recently paid $13,275 for an investment that promises to pay $675 at the end of each of the next…

A: Given: The amount paid for the investment is $13,275 and the annual receipts from investment is $675…

Q: The four people below have the following investments. Invested Amount $ 11,300 14,300 21,300 17,300…

A: The future value is value of present investment in future. It is calculated by taking initial…

Q: The four people below have the following investments. Jerry Elaine George Kramer Invested Amount $…

A: Future value refers to the value of the current asset at some future date affected by interest rate,…

Q: An investment had annual holding period returns of 5%, 12%, and 10% for the last three years. What…

A: The question is based on the concept of Financial Management

Q: A potential investment has a cost of $440,000 and a useful life of 6 years. Annual cash sales from…

A: Future value refers to the compounded value of the future cash flow. Compounding is done with the…

Q: 3.4 Benefit Cost Ratio of Project B (answer expressed to three decimal places). 3.5 Internal Rate of…

A: Internal Rate of Return (IRR) is that discounting rate at which Net Present Value of the project is…

Q: 2.28 (LG 2.3, 2.4) Compute the effective annual interest rate on each of these investments: a. 25…

A: Effective annual interest rate is the actual rate of return which takes compounding into account…

Q: Consider the following portfolio of assets and liabilities. The time, t, is measured in years.…

A: Effective Duration Calculation:Assets:Calculate the effective duration of the assets using the…

Q: Suppose the spot rates of interest for investment horizons of 1 to 5 years are 4%, and for 6 to 10…

A: Present value of 500 using rates given for 10 years i.e 4.5% 1 to 5 years. 1 500 478.4689 2…

Q: What is the present value of an investment that promises to pay the investor $6,500 at the end of…

A: Per year payment(annuity) = $6500 Time =9 years Rate =14% *end of the year payment

Q: Consider the following returns for two investments. A and B, over the past four years: Investment 1:…

A: Before computing the Sharpe ratio, it is essential to calculate both the mean (which provides the…

Q: Which of the two alternatives based on future worth method of comparison should be selected?…

A: Future worth method computes the future value of the project or alternative available. Future worth…

Q: 22: Find out the capitalized cost of a certain investment based on the following: 1. An initial…

A: Solution- (1)-Initial deposit=100,000(2)Payment every 6 years starting from year 1=10,000 Present…

Q: Do not use ai

A: To determine the fair value of the investment.Given:- The investment pays $100 per year in year 1-…

Q: REQUIRED Use the information provided below to calculate the following: 3.1 Payback Period of…

A: Pay back Period  = Initial Cost / Annual Cashflow  Accounting Rate of Return  = Average Net Income /…

Q: Give me correct answer

A: Given, First paym nt = $100Growth rate = 3%Required return = 8% Fair value of investment = Required…

Q: Year 1 2 3 4 5 Investment Proposal Book Value $69,900 41,000 21,000 7,600 0 Annual Cash Flows…

A: Annual rate of return = Average annual income / Average investmentNPV = Present value of cash…

Q: er question B.

A: The given problem can be computed using VAR and STDEV formula in excel.

Q: In how long does a capital invested at 5% simple annual interest grow 24%? a.4.8 b.5.2 c.6…

A: Simple Interest formula  = P * R * T  where P = Principle R = Rate of interest T = Time

Q: An investment of GH¢10000 returns GH¢3000 at the end of years 1 and 2 and GH¢3500 at the end of…

A: IRR: IRR or Internal rate of return is the rate at which net present value of cash flows is equal to…

Q: 9% b. 20% c. 26% d. 22

A: IRR is a rate at which present value of cash inflows is equal to present value of cashoutflows.