Again, in addition to the original problem statement, you now believe that Investments 4 and 5 should be considered mutually exclusive. What is the present worth for the optimum portfolio? $ x Your answer is incorrect.
Again, in addition to the original problem statement, you now believe that Investments 4 and 5 should be considered mutually exclusive. What is the present worth for the optimum portfolio? $ x Your answer is incorrect.
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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Answer the given question with a proper explanation and step-by-step solution. Please provide the answer using the math tool otherwise I give the downvote.
Transcribed Image Text:Again, in addition to the original problem statement, you now believe that Investments 4 and 5 should be considered mutually
exclusive.
What is the present worth for the optimum portfolio? $
x Your answer is incorrect.
What is the IRR for the optimum portfolio?
17 %
Transcribed Image Text:Suppose your own consulting firm has been doing well, and you believe it is time to add a new, related area of engineering services. To
do so, you have identified the following 5 independent, indivisible, equal-lived investments, each of which guarantees you can exit it
after 4 years and have your initial investment returned to you. Each year, you receive an annual return as noted below. Your MARR is
10%, and you have $250,000 to invest.
Investment
2
4
Initial Investment $45,000 $60,000 $85,000 $100,000 $75.000
Annual Return
$4,000 $7,000
$9,000 $12.000 $11.000
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