Calculate the annualised rate of return of an investment that, for an initialinvestment of £ 2440, produces a single payment of £4120 after 3 years, taxed at therate of 10%. State your answer as a percentage to 3 significant figures. Do not typein the % sign after your answer. For example, if your answer is 5.23%, then type in5.23

Rate of return is the amount of profit earned on the initial investment as percentage of initial…

Calculate the annualised rate of return of an investment that, for an initial nvestment of £ 2440, produces a single payment of £4120 after 3 years, taxed at the ate of 10%. State your answer as a percentage to 3 significant figures. Do not type n the % sign after your answer. For example, if your answer is 5.23%, then type in 5.23

Calculate the annualised rate of return of an investment that, for an initial nvestment of £ 2440, produces a single payment of £4120 after 3 years, taxed at the ate of 10%. State your answer as a percentage to 3 significant figures. Do not type n the % sign after your answer. For example, if your answer is 5.23%, then type in 5.23

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The common stock of XYZ paid $1.32 in dividends last year. Dividends are expected to grow at an 8% annual rate for an indefinite number of years. If the require rate of return is 10.5%, should you make this investment? Why?
In Year 2532, the world is “Exactly” different. Every second, minute, hour counts in comes to interest. Compute the future amount of an investment P 100,000 with an interest of 15% after 74 days, 2 hours, 6 minutes and 20 seconds
a) Bond has a face value of ₡3000 and pays coupon of 12% per annum for 4 years, if the market interest rate is 16%. How much will you pay for this bond. If the coupon was to be paid semi- annually will your answer be different. b) A U.S. investor obtains Ghana cedis when the cedi is worth $.33 and invests in a one-year money market security that provides a yield (in cedis) of 24%. At the end of one year, the investor converts the proceeds from the investment back to dollars at the prevailing spot rate of $.26. What is the effective yield earned by this foreign investor?
A common stock just paid a dividend of $1.2. The dividend is expected to growat 8% for 5 years, then it will grow at 4% in perpetuity. Calculate the stock value. Thediscount rate is 12%. (Hint: dividend states in 3 decimals and price states in 2 decimals)
Please proceed with this problem In Year 2532, the world is “Exactly” different. Every second, minute, hour counts in comes to interest. Compute the future amount of an investment P 100,000 with an interest of 15% after 74 days, 2 hours, 6 minutes and 20 seconds.
The geometric series arises when the value of an individual cash flow differs from the preceding cash flow by a constant, G. Select one: O True False
A labor saving device system save $2,000 per year for five (5) years. It can be installed at a cost of $8,000. The rate of return on this planned investment is most nearly: a. = 12.36% b. = 9.36% c. 10% d. i = 8%
Consider an investment with the following returns over four years: Year 1 3 4 Return 10% 20% -5% 15% a. What is the compound annual growth rate (CAGR) for this investment over the four years? b. What is the average annual return of the investment over the four years?
1. Consider a wine dealer who has k bottles of wine. The dealer can sell them now (t = 0) or can store it for some time and then sell them later. The value of k bottles at t-th month is given by: Vt = ket The dealer can use the sales revenue as principal in a risk-free investment at rate r. (b) Write out the present value PV, of k bottles at t-th month.
ENGINEERING ECONOMICS Bawal Gumamit ng Excel( Don't use Excel) A small company purchased now for 1.15M will lose 75,000 each year for the first 4 years. An additional P400,000 invested in the company during the 4th year will result in a profit of 27,500 from the 5th year through the 15th year. At the end of 15 years, the company can be sold for 1.65M. c. Calculate ERR ϵ = 12% per year.
A company has two independent investment opportunities. The initial capital occurs at the beginning of the first year. The company's required rate of return is 8 percent. The first option (A) requires an initial investment of 1500 million Fts with an expected life of 8 years. At the end of the 8th year company earns a yield of 4588.56 million Fts. The second option (B) requires an initial investment of 1400 million Fts with an expected life of 4 years. At the end of the 4th year company earns a yield of 2903.059 million Fts. The real profitability of the investments is between 5 and 25 percent. Calculate the Profitability Index of the project B! Give the result and choose the unit of the result. Answer: