Hao made a single investment which, after 5 years invested at 14% compounded semiannually, has accumulated to$219,900. How much did Hao invest initially? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) fromthe tables provided.)Multiple Choice$219,897$170,787$216,067$111,775$33,523

PRESENT VALUE Present Value is the Current Value of Future Cash Flows at a Discounting Rate. Present…

Answered: Hao made a single investment which,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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This question is based on the following information: Each of the three independent investments below has a life of 10 years. The cost of capital for the 3 investments is 14%. The PV of an annuity of P 1 for 10 years at 14% is 5.216. Amount (O) Annual cash inflows (I) Net present value (NPV) Investment A P449,400 P 100,000 ? Investment B ? 70,000 13,800 Investment C 198,208 ? 36,512 The amount of investment for investment B isA. P 351,320B. P 351,230C. P 350,000D. P 315,320
What is the IRR for a $1,075 investment that returns $190 at the end of each of the next 6 years?(Perform all calculations using 5 significant figures and round your answer to two decimal places): Answer: ____________%
Current Attempt in Progress Wildhorse Company earns 6% on an investment that will return $450,000 10 years from now. Click here to view the factor tabi (For calculation purposes, use 5 decimal places as displayed in the factor provided) What is the amount Wildhorse should invest now to earn this rat of return? (Round answer to 2 decimal places, eg 25.253 Wildhorse Company should invest 5
Please give answer a & b And Don't give answer in image format
How much must be invested now at 9% interest to accumulate to $23,000 in seven years? (FV of $1, PV of $1, FVA of $1, and PVA of $1). (Use appropriate factor(s) from the tables provided.) Multiple Choice $12,582 $12,510 $11,500 $14,490
Red Company invested $20,000 in a fund that was earning interest at a rate of 3.00% compounded semi-annually. After 2 years and 9 months, the company transferred these funds to another investment that was earning interest at 5.50% compounded monthly.
Please show all the steps required to understand the concept clearly with formula
A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 2 3 4 5 6 7 Year 0 1 2 3 4 5 6 7 Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$405 $133 $133 $133 $133 $133 $133 $0 Open spreadsheet What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Project A: $ fill in the blank 2 Project B: $ fill in the blank 3 What is each project's IRR? Round your answer to two decimal places. Project A: fill in the blank 4% Project B: fill in the blank 5% What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Round your answer to two decimal places. Do not round your intermediate calculations. Project A: fill in the blank 6% Project B: fill in the blank 7%…
Find Simple Interest, A sum of $78000, is invested from March 13 until Dec 20 of the same year at 14.25% simple interest. using any two methods of computing Simple Interest:
Subject-Acounting
Information on four investment proposals is given below: 6 years A B Investment required Present value of cash inflows Net present value $ (300,000) 424,800 $ 124,800 $ (140,000) 191,700 $ 51,700 Investment Proposal C $ (100,000) 151,100 $ 51,100 Life of the project 5 years 7 years Required: 1. Compute the profitability index for each investment proposal. Note: Round your answers to 2 decimal places. 2. Rank the proposals in terms of preference. Investment Profitability Proposal Index Rank Preference ABCD D $ (1,500,000) 2,001,700 $ 501,700 6 years
Net cost of investment is 100,000. Profitability index is 1.3 while cost of capital is 10%. Useful life is 10 years. Use up to two decimal places for the PVF. What is the ARR? A• 42.35% B• 21.17% C• 22.34% D• 30%

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