Consider the following projects cash flows:End of Year (n)Project AProject B Project C Project D-$1,000-$3,000$2,000- $4,0001$200$2,000-$600-$1,0002$500$2,000-$600$6,0003$600-$1,500- $6004$400$2,000- $600$2,000Which of the following statements is correct ?Select one:a. Project A is the only simple investmentb. Project A andD are the only projects that will have a unique positiverate of returnc. Project B is the only non simple investmentd. None of the above

Explanation : A simple investment refers to the investment in which there is a single outflow or…

Answered: $200 $500 $600

Business

Finance

$200 $500 $600

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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Question

Consider the following projects cash flows:
End of Year (n)
Project A
Project B Project C Project D
-$1,000
-$3,000
$2,000
- $4,000
1
$200
$2,000
-$600
-$1,000
2
$500
$2,000
-$600
$6,000
3
$600
-$1,500
- $600
4
$400
$2,000
- $600
$2,000
Which of the following statements is correct ?
Select one:
a. Project A is the only simple investment
b. Project A andD are the only projects that will have a unique positive
rate of return
c. Project B is the only non simple investment
d. None of the above

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Exercise 10-3A (Algo) Determining the present value of a lump-sum future cash receipt LO 10-1 Gail Trevino expects to receive a $630,000 cash benefit when she retires seven years from today. Ms. Trevino’s employer has offered an early retirement incentive by agreeing to pay her $368,000 today if she agrees to retire immediately. Ms. Trevino desires to earn a rate of return of 10 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Required a. Calculate the present value of the $630,000 future cash benefit. Assuming that the retirement benefit is the only consideration in making the retirement decision, should Ms. Trevino accept her employer’s offer? (Round your final answer to the nearest whole dollar value.)
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