Ashley projects that she can get $130,000 cash per year for 5 years on a real estate investment project. If Ashley wants to earn a rate of return of 10%,what is the maximum that she should pay for the investment? (PV of $1 and PVA of $1)Note: Use appropriate factor(s) from the tables provided. Round your answer to the nearest dollar.Multiple ChoiceO$430,576$598,000$492,802$88,476Prev1 of 35MacBook AirNext > Ashley projects that she can get $130,000 cash per year for 5 years on a real estate investment project. If Ashley wants to earn a rate of return of 10%,what is the maximum that she should pay for the investment? (PV of $1 and PVA of $1)Note: Use appropriate factor(s) from the tables provided. Round your answer to the nearest dollar.Multiple ChoiceO$430,576$598,000$492,802$88,476Prev1 of 35MacBook AirNext >

Especially in retirement, annuities are a popular financial strategy for securing a consistent income source. They provide a means for people to gradually satisfy their financial demands by breaking up a large quantity of money into a number of installments.Thus the present value is $492,802Final answer-the present value is $492,802 so option C is correct

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Ashley projects that she can get $130,000 cash per year for 5 years on a real estate investment project. If Ashley wants to earn a rate of return of 10%, what is the maximum that she should pay for the investment? (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your answer to the nearest dollar. Multiple Choice $430,576 $598,000 $492,802 $88,476 Prev 1 of 35 Next >

Ashley projects that she can get $130,000 cash per year for 5 years on a real estate investment project. If Ashley wants to earn a rate of return of 10%, what is the maximum that she should pay for the investment? (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your answer to the nearest dollar. Multiple Choice $430,576 $598,000 $492,802 $88,476 Prev 1 of 35 Next >

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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Shane wants to invest money in a 4% CD that compounds semiannually. Shane would like the account to have a balance of $160,000 four years from now. How much must Shane deposit to accomplish his goal? (FV of $1, PV of $1, FVA of $1, and PVA of $1). (Use appropriate factor(s) from the tables provided.) Multiple Choice $147,815 $136,558 $12,800 $25,600
Sheldon Cooper and Amy Fowler are married and live in Pasadena, California. They have as a new investment goal to create a college fund for their newborn daughter. They estimate that they will need $195,000 in 18 years. Assuming that the Cooper-Fowler family could obtain a return of 5 percent, how much would they need to invest annually to reach their goal? Use Appendix A-3 or the Garman/Forgue companion website. Round your answer to the nearest dollar. Round Future Value of a Series of Equal Amounts in intermediate calculations to four decimal places.
Sonia wants to have $13,000 in 8 years. Use Table 11-2 to calculate how much she should invest now (in $) at 6% interest, compounded semiannually in order to reach this goal. (Round your answer to the nearest cent.) $
Sonia wants to have $15,000 in 10 years. Use Table 11-2 to calculate how much she should invest now (in $) at 6% interest, compounded semiannually in order to reach this goal. (Round your answer to the nearest cent.) $ 8305.13
Bill Padley expects to invest $15,000 for 5 years, after which he wants to receive $22,039.50. What rate of interest must Padley earn? (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value Present Value Table Factor Interest Rate %
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Michelle wants to set aside funds to take an around the world cruise in 7 years. Michelle expects that she will need $26500 for her dream vacation. If she is able to earn 8% per annum on an investment, how much will she have to set aside today so that she will have sufficient funds available? O $15462. O $14316. O $2970. O $45414.
Megan Brink is offered the possibility of investing $13,119 today at 9% Interest per year in a desire to accumulate $22,000. How many years must Brink wait to accumulate $22,000? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "PV of a single amount" to 4 decimal places and final answer to the nearest whole number.) Present Value Future Value p (PV of a Single Amount) Years years
Wendy has $23,000.00 invested in a bank that pays 14.25% annually. How long will it take for her funds to triple?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. Group of answer choices
16 Mary Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $390,000 per year for 25 years beginning today, or receiving one lump-sum amount today. Mary Alice can earn 6% investing this money. At what lump-sum payment amount would she be indifferent between the two alternatives? Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1,PVA of $1, FVAD of $1 and PVAD of $1)
You purchase a plot of land worth $54,000 to create a community garden. To do so, you secure a 10-year loan, charging 5.22% APR, compounded monthly, and requiring monthly payments of $505. (Assume the value of the land is still $54,000. Round each answer to the nearest dollar.) (a) Assuming that you put some money down, what was your original loan amount (in dollars)? X $ (b) What is the outstanding balance (in dollars) on your loan after making 4 years of payments? $ 170255.84 (c) How much equity (in dollars) do you have in the garden after 4 years? $ X
Your younger sibling asks you to borrow $20. You, a smart financial professional, agree but also charge interest on the $20. You plan to collect $5 from your sibling each week for 8 weeks to repay the initial loan. What is the NPV of this project, assuming you invest the $5 at 12%? a. $4.84 b. $2.11 c. $0 d. $6.88

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