Consider the following investment project. Calculate the net future worth of this investment at 11% and determine the acceptability of the investment.QnAn0- $76,00027,50028,50020,70020,70026,000Single PaymentCompound PresentEqual Payment SeriesSinking PresentFundAmountWorthWorthFactorFactorFactorFactor(F/P, i, N)(P/F, i, N)(A/F, i, N)(P/A, i, N)1.11000.90091.00000.90091.23210.81160.47391.71251.36760.73120.29922.44371.51810.65870.21233.10241.68510.59350.16063.69591.87040.53460.12644.23052.07620.48170.10224.71222.30450.43390.08435.146192.55800.39090.07065.5370102.83940.35220.05985.8892The net future worth of this investment will be $ thousand.AWNIN1234567812345CompoundAmountFactor(F/A, i, N)1.00002.11003.34214.70976.22787.91299.783311.859414.164016.7220CapitalRecoveryFactor(A/P, i, N)1.11000.58390.40920.32230.27060.23640.21220.19430.18060.1698

Future value can be referred to as the value of an underlying asset or security at a future date.…

Consider the following investment project. Calculate the net future worth of this investment at 11% and determine the acceptability of the investment. n An 0 - $76,000 1 27,500 28,500 20,700 20,700 26,000 Single Payment Compound Present Equal Payment Series Sinking Present Fund Factor Amount Worth Worth Capital Recovery Factor Factor Factor Factor (F/P, i, N) (P/F, i, N) (A/F, i, N) (P/A, i, N) (A/P, i, N) 1.1100 0.9009 1.0000 0.9009 1.1100 1.2321 0.8116 0.4739 1.7125 0.5839 1.3676 0.7312 0.2992 2.4437 0.4092 1.5181 0.6587 0.2123 3.1024 0.3223 1.6851 0.5935 0.1606 3.6959 0.2706 1.8704 0.5346 0.1264 4.2305 0.2364 0.4817 0.1022 4.7122 0.2122 2.0762 2.3045 0.4339 0.0843 5.1461 0.1943 2.5580 0.3909 0.0706 5.5370 0.1806 10 2.8394 0.3522 0.0598 5.8892 0.1698 The net future worth of this investment will be $ thousand. GAWNIN 2 3 4 5 6789 2345 Compound Amount Factor (F/A, i, N) 1.0000 2.1100 3.3421 4.7097 6.2278 7.9129 9.7833 11.8594 14.1640 16.7220

Consider the following investment project. Calculate the net future worth of this investment at 11% and determine the acceptability of the investment. n An 0 - $76,000 1 27,500 28,500 20,700 20,700 26,000 Single Payment Compound Present Equal Payment Series Sinking Present Fund Factor Amount Worth Worth Capital Recovery Factor Factor Factor Factor (F/P, i, N) (P/F, i, N) (A/F, i, N) (P/A, i, N) (A/P, i, N) 1.1100 0.9009 1.0000 0.9009 1.1100 1.2321 0.8116 0.4739 1.7125 0.5839 1.3676 0.7312 0.2992 2.4437 0.4092 1.5181 0.6587 0.2123 3.1024 0.3223 1.6851 0.5935 0.1606 3.6959 0.2706 1.8704 0.5346 0.1264 4.2305 0.2364 0.4817 0.1022 4.7122 0.2122 2.0762 2.3045 0.4339 0.0843 5.1461 0.1943 2.5580 0.3909 0.0706 5.5370 0.1806 10 2.8394 0.3522 0.0598 5.8892 0.1698 The net future worth of this investment will be $ thousand. GAWNIN 2 3 4 5 6789 2345 Compound Amount Factor (F/A, i, N) 1.0000 2.1100 3.3421 4.7097 6.2278 7.9129 9.7833 11.8594 14.1640 16.7220

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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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Consider the following investment project. Calculate the net future worth of this investment at 11% and determine the acceptability of the investment.
Q
n
An
0
- $76,000
27,500
28,500
20,700
20,700
26,000
Single Payment
Compound Present
Equal Payment Series
Sinking Present
Fund
Amount
Worth
Worth
Factor
Factor
Factor
Factor
(F/P, i, N)
(P/F, i, N)
(A/F, i, N)
(P/A, i, N)
1.1100
0.9009
1.0000
0.9009
1.2321
0.8116
0.4739
1.7125
1.3676
0.7312
0.2992
2.4437
1.5181
0.6587
0.2123
3.1024
1.6851
0.5935
0.1606
3.6959
1.8704
0.5346
0.1264
4.2305
2.0762
0.4817
0.1022
4.7122
2.3045
0.4339
0.0843
5.1461
9
2.5580
0.3909
0.0706
5.5370
10
2.8394
0.3522
0.0598
5.8892
The net future worth of this investment will be $ thousand.
AWNIN
1
2
3
4
5
6
7
8
1
2
3
4
5
Compound
Amount
Factor
(F/A, i, N)
1.0000
2.1100
3.3421
4.7097
6.2278
7.9129
9.7833
11.8594
14.1640
16.7220
Capital
Recovery
Factor
(A/P, i, N)
1.1100
0.5839
0.4092
0.3223
0.2706
0.2364
0.2122
0.1943
0.1806
0.1698

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