How much would you be willing to pay for this investment if you required a 12 percent rate of return? $ If the payments were received at the beginning of each year, what would you be willing to pay for this investment?
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Mitchell Investments has offered you the following investment opportunity:
- $8,000 at the end of each year for the first 3 years, plus
- $7,000 at the end of each year from years 4 through 6, plus
- $3,000 at the end of each year from years 7 through 19.
-
How much would you be willing to pay for this investment if you required a 12 percent
rate of return ?
$ -
If the payments were received at the beginning of each year, what would you be willing to pay for this investment?
$
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- An investment offers to pay you $10,000 a year for four years. If it costs $27,980, what will be your rate of return on the investment? Use Appendix D to answer the question. Round your answer to the nearest whole number.What is the excel function and formula for this question? Off-The-Books Investment Firm, LLC, has offered you an investment it says will return to you $20,000 in 2 years. To get in, you'll need to make a $10,000 deposit to their receivables account and promise not to tell anyone about it. What is the annual return on this investment?Your financial advisor from Bluerock recommends you to invest in one of the plan. You want to compare and verify which of the following is the best investment option. Investment Plan A: Deposit $125,000 at the beginning and obtain $175,318.97 after 5 years.Investment Plan B: Deposit $243,000 at the beginning and obtain $319,771.42 after 7 years.Investment Plan C: Deposit $314,000 at the beginning and obtain $530,496.39 after 9 years. 1. Compute interest rate for all 3 plans. Which investment plan provides you the highest rate? 2. Your advisor updated the investment plan information yesterday. While the interest rate did not change for all 3 plans, future values of each investment are 210382.76, 415702.85, 742694.95, respectively. What would be the investment period for each plan? 3. Your advisor thinks it would be a good investment if you make an investment portfolio using all 3 investment plans suggested. He recommends investing in all 3 plans at year 0 and reinvest the money to…
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