annual revenue is 50 000$ at probability 30% 100 000 at probability 50% and 125 000 $ at 20% . the life of project is 2 year at probability 20%, 3 year at 20% 4 year at 50% ,5 year at 10%, find expected present worth if i=9 % per year.

Q: You have $100,000 to invest today. At 5 percent per year, what sum can you withdraw at the end of…

A: Solution 1: True, Intermediate goals have a time frame of two to seven years.

Q: A house worth P1,000,000.00 was built within five months. In the 6th month, the house will be rented…

A: Worth of House = 1,000,000 Cash flows start in 6 month Cash inflow = 5000 N = Number of cash inflows…

Q: A project with an investment of $10,000 has net cash flows of $9, 000, $3,000, and $1,000 for each…

A: Average rate of return =Average net profits/average investment×100Average net profits =Total net…

Q: An investment of P100,000 is expected to yield a regular annual net income of P25,000 per year for…

A: Calculation of benefit cost ratio are as follows

Q: Project R has annual cash flows of $6,000 for the next 10 years and then $5,000 each year for the…

A: Annual cash flow for 10 years = $6,000 Annual cash flow in following 10 years = $5,000 IRR = 12.92%…

Q: You currently have $8,700 to invest. You can invest the full amount now for a period of 9 years at…

A: Final Value after 9 years = $15,000Initial Value = $8,700Number of years (n) = 9

Q: A $90,000 investment is made at t=0, and returns are realized over a 5-year period. A return of…

A: The present value of money refers to the concept that a dollar received in the future is worth less…

Q: Today (t=0), you invested the starting prinipal of 1536 dollars. At the end of the first, second and…

A: NPV is one of the capital budgeting method based on the time value of money and can be found as the…

Q: a) What is the DPBP for the investment? Show your answer to 2 decimal places. b) Based on a 10-year…

A: The time it takes for an investment to recoup its initial cost is measured using the discounted…

Q: Find the future value

A: Future value = Present value(1  + Rate)^Time where, Rate = 0.03 / 2 = 0.015 or 1.5% Time = 5 * 2 =…

Q: A project that provides annual cash flows of $72,000 for 6 years costs $263,000 today. If the…

A: Initial Cost = 263,000 Annual Cash Flow = 72,000 N = 6 years Required Return = 14%

Q: An investment product promises to pay $43,000 at the end of 8 years. If an investor feels this…

A: The future value formula:Future value = Investment ( 1+ r) nGiven,future value = $43000r is the…

Q: Calculate the MIRR for a project where the WACC is 6%. Invest: $95 today plus $30 at the end of year…

A: To calculate the Modified Internal Rate of Return (MIRR) for this project, we need to find the…

Q: A project will generate annual cash flows of $237,500 for each of the next three years, and a cash…

A: The Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of an…

Q: A project get continuous stream of income with constant rate of $100 per annum from t=0 to t=4, t is…

A: We have to find the accumulated value of an annuity, sometime in future.

Q: A project requires a $180k investment and will generate five annual cash flows of $60k starting next…

A: To calculate the NPV of the project, you need to use the following formula: NPV = CF1 / (1 + r)^1 +…

Q: Suppose you are given the cash flows for a project with the following cash flows. The cost of…

A: The discounted payback period is the overall expected time required to recover the initial cost in…

Q: Investment A will return $2000 a month for 7 years. I require a 16% return. If it Cost $125000, I…

A: The concept of time value of money will be used here in this case to solve the question. The monthly…

Q: .If you invest $10,000 now into a project that will yield net revenues of $1.327 at the end of each…

A: Internal rate of return (IRR) refers to the discount rate that is associated with an investment's…

Q: 10. Following information about a project is given a. Project duration: 10 years b. Risk free…

A: Net Present Value of a project here is the sum of the present value of the profits of the project.…

Q: Initial cash outlay is $50,000.  The required rate of return is 9%.  The length of time of the…

A: Solution:Net Present Value (NPV) means the net present value of cash inflows from the project after…

Q: The profitability index of a certain project is 1.2 with an investment of P 56,600. Cost of capital…

A: The profitability index (PI) is a financial tool to measure the profitability of a proposed…

Q: What is the profitability index of a project that costs $87 and returns $42 annually for 8 years if…

A: Introduction Profitability Index As the word states, PI(Profitability index measures the ratio…

Q: O A investment opportunity requires an investment today of $48.91 and then in five years, will…

A: Investment today (present value) = $48.91After 5 years, you will get $24 with 0.50 or 50%…

Q: What is the NPV of a project that costs $0.5 million and cash inflows $6000 /month paid annualy for…

A: Data given: Initial cost = $0.5 million Cash inflow per month=$6000 N=10 years Cost of capital=6%…

Q: A project that provides annual cash flows of $24,000 for 9 years costs $110,000 today. Under the IRR…

A: Required return = 8%Initial cash flow (Year 0) = - $110,000Cash inflow (Year 1 - 9) = $24,000IRR =…

Q: A project with an initial cost of $51,200 is expected to generate annual cash flows of $16,030 for…

A: IRR is also known as Net Present alue. It is a capital budgeting techniques which helps in decision…

Q: Use the historical dividend data below to calculate the constant  growth rate, estimate the price of…

A: Constant growth rate is that rate of increase in value under which value of any assets will increase…

Q: A project costs $1200.00 at the end of the 1st year and the yearly cost increases by $400.00 every…

A: EUAC = r*NPV/1-(1+r)^(-n) here r = 8% and n is 4 years Let us first compute the NPV: Year Costs…

Q: If the minimum attractive rate of return is 7%, calculate the incremental rate of return. A ($) B…

A: Incremental cash flows consist of initial incremental cash outflow, incremental annual benefit and…

Q: Assuming monetary benefits of an IS at $85,000 per year (5% inflation), one-time sunk developmental…

A: ROI means return on Investments. It is calculated by dividing the net cash inflows by the…

Q: You want to invest in a project that costs $4125.  The initial (Date 0) CF of the project is $75…

A: NPV of a project = Initial Outflow - Present value of future inflow of cash Given  Initial Outlay…

Q: Calculate the discounted payback of a $200,000 project with annual cash flows of $50,000 per year…

A: The cost of the project is $200,000.The annual cash flow is $50,000 and the maturity of the project…

Q: .If you invest $10,000 now into a project that will yield net revenues of $1.327 at the end of each…

A: Discount factor = Initial investment / net revenue = $10000 / $1327 = 7.536

Q: An investment that costs $30,000 will produce annual cash flows of $10,000 for a period of 4 years.…

A: A future cash flow (or stream of cash flows present )'s value (PV) is an estimate of how much it is…

Q: A project whose machinery and installation cost $15,000, promises a net      stream of savings of…

A: Given that;The cash flows are:Year 0: -$15,000Year 1: $3,000Year 2: $3,000Year 3: $3,000Year 4:…

Q: The cost of the project is $100,000. You expect the project to make $500,000 in 7years (CF of year 7…

A: The IRR for this project is C) 22.01%Explanation:To find the Internal Rate of Return (IRR) for the…

Q: What principal deposited 3 years ago will grow to $24,939.86 in 5 years and 4 months from now if…

A: Present value refers to the current value of all future cash flows and the annuity amount discounted…

Q: Calculate the IRR and NPV for a $1,000,000 investment with a 5% return annually over a 5 year period…

A: The terms "net present value" (NPV) and "net present worth" (NPW) are used to describe a set of…

Q: The in itial cost of an investment is $65,000 and thecost of capital is I 0%. The return is $ 16,000…

A: Net present value is the difference between the present value of cash flow and initial investment.

Q: A project with a useful life of eight years requires an investment of $200,000 and yields after tax…

A: hence for the calculation of the Accounting rate of return:Investment= 200000/-Income tax= after…