If you invest $131,300 in a project which yields an annual return of $25,400, how many years will it take to recover your investment if the annual interest rate is 5.5%? O a. 8 O b.5 O c. 7 O d. 6 O e. 9
Q: How much would you be willing to pay today for an investment that would return P1,250 each year for…
A: The amount to be paid today is calculated as the present value of annuity
Q: A proposed project is expected to generate returns of $50,000 per year for each of the next four…
A: Annual return (A) = $50000 n = 4 years Project cost (C) = $145685 Let i = IRR
Q: 1. Suppose Glenn invested P10,000 for 5 years with simple annual interest of 10%. What is the future…
A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: Please show all equations and work as needed. Make the correct answer clear. If possible, please…
A: The present value (PV) of the investment is the sum of the present value of year 1 cash flows, year…
Q: You are considering investing in a project that will cost $210,000. The net annual cash flows from…
A: The initial cash outflow is $210,000.
Q: You have an opportunity to invest $100,000 now in return for $79,700 in one year and $30,100 in two…
A: The net present value (NPV) is a financial metric that helps in finding out the total value of an…
Q: Consider a project that requires an initial investment of $105,000 and will produce a single cash…
A: Initial Investment = 105,000 Cash flow in 4 year = 154,000 N = 4
Q: Consider a project that requires a $10 000 cash outlay and provides $5000 after one year and $7000…
A: NPV and profitability index are capital budgeting techniques, which are used to compare the net…
Q: You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive…
A: Amount Investved today is $10,000 Cash flow at year 1 is $500 Cash flow at year 2 is $1,500 Cash…
Q: 5. If you invest £200 now and want it to double in amount (i.e., grow to £400), how long will you…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: o Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5…
A: Note: It is a case where no sub-parts are specified to solve among the multiple sub-parts posted, so…
Q: A firm is considering a six-year project with a payback period of 3.5 years. It has cash flows the…
A: Let the initial investment = X Payback period = 3.5 years r = 10% As the cashflows are uneven,…
Q: An investment has a cost of $3500. The investment will have a payout at the end of the first year.…
A: Approach: Let's assume the desired minimum payout is P.We will roll out the yearly payout…
Q: You are considering an investment opportunity that requires an initial investment of $148 million in…
A: IRR is an important capital budgeting tool. IRR is that rate at which NPV (net present value) is…
Q: You have been offered an investment opportunity that pays $600 every quarter for nine years and…
A: Current value is the present value of the future payments at a given rate of return. Given:…
Q: You want to invest in a project that costs $4125. The initial (Date 0) CF of the project is $75…
A: NPV of a project = Initial Outflow - Present value of future inflow of cash Given Initial Outlay…
Q: Project X has an initial investment cost of $20.0 million. After 10 years it will have a salvage…
A: Internal rate of return is the return at which present value of cash flow is equal to initial…
Q: 6.if a project requires an initial current investment of £100 and promises to raise £121 after one…
A: Net present value (NPV) is a capital budgeting technique that helps in evaluating various…
Q: You have an opportunity to invest $106,000 now in return for $80,100 in one yoar and $30.400 in two…
A:
Q: An individual decides to invest in one of two projects, A and B, which both require the same initial…
A: Here, Initial outlays of both Projects A and B = $10,000 Yields from Project A = $11,500 Number of…
Q: You have the opportunity to make an investment that costs $1.000,000. If you make this investment…
A: Excel Spreadsheet:
Q: f a project requires an initial current investment of £200 and promises to raise £133.1 after three…
A: Current investment = £200 Cash inflow after 3 years = £133.1 Interest rate = 10% Present value of…
Q: evaluating a project that will cost $541,000, but is expected to produce cash flows of $129,000 per…
A: NPV= Present value of cashinflows - Present value of cashoutflows.
Q: If you invest $73,300 in a project which yields an annual return of $13,500, how many years will it…
A: Given, Amount of investment is $73,300 Annual return $13,500. Rate of interest is 4.5%.
Q: If you invest $131,300 in a project which yields an annual return of $17,500, how many years will it…
A: Since you have asked multiple questions, we will solve the first question for you. Please answer…
Q: You are looking to invest in a project. The expected return of 5% is used as the discount rate. The…
A: Discount Rate = 5℅ Initial Investment = P6,000,000
Q: A project will have an initial investment requirement of $5,000. Then, it will generate 5 years of…
A: Given:
Q: Find the IRR for an investment that has an initial outlay of 25,000 and is expected to achieve…
A: Information Provided: Cash outflow = (25,000) Cash Inflow (for 7 years) = 30,000
Q: A firm is considering a six-year project with a payback period of 3.5 years. It has cash flows the…
A: Payback period means the period when the project is able to recover its initial investment without…
Q: You have been offered a project paying $300 at the beginning of each year for the next 20 years.…
A: Annual payment (P) = $300 Interest rate (r) = 9% Period (n) = 20 Years
Q: You have an opportunity to invest $104,000 now in return for $80,300 in one year and $30,300 in two…
A: NPV = Present Value of cash inflow - Present Value of cash outflow
Q: If you insulate your office for $12,000, you will save $1,200 a year in heating expenses. These…
A: Net present value is the excess of the present value of cash inflows over the present value of cash…
Q: If you put up GHC1,250 in a one-year investment and get back GHC1,350. What rate is this investment…
A: Investment is referred as an asset that are invested or acquired for building the wealth as well as…
Q: You invest $55 000 today into a project with a life of 4 years and which is expected to generate the…
A: Introduction: The payback period refers to the time required by an investment to cover its initial…
Q: A company is considering a long term investment that requires a $45.000 investment today, and then…
A: Net present value is the difference between present value of cash inflows and initial investment.…
Q: If you insulate your office for $18,000, you will save $1,800 a year in heating expenses. These…
A: Formula: NPV = Present values of cash inflows - Present values of cash outflows. Deduction of…
Q: A project’s annual revenues will be $50,000 the first year and will decrease by $1500 per year over…
A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…
Q: You have an opportunity to invest $110,000 now in return for $79,400 in one year and S29,500 in two…
A: In capital budgeting, the investment appraisal process involves the evaluation of an investment's…
Q: A project that costs $50 million is expected to generate $20 million per year over the next 4 years.…
A: Calculation of Payback Period, Net Present Value, Internal Rate of Return and Modified Internal Rate…
Q: 1. A project requires an initial capital cost of (40 million ID). The investor expects the project…
A: Concept. Present worth method. Under this method , all cashflows associated with project are…
Q: In one year’s time, you plan to invest a certain sum of money that will grow to R100 000 ten years…
A: Future value = R 100,000 Period = 10 Years Annual interest rate = 11% As per formula…
Q: You are considering investing $15,000 in a project today. This project will generate $6,500 per year…
A: Net present value calculation is one of the technique of capital budgeting, under which present…
Q: If you invest $131,300 in a project which yields an annual return of $25,400, how many years will it…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: o ha
A: Maximum initial investment should be equal to the present value of annual cash flows. This can be…
Q: What is the most you would pay for this investment if you require a 10% return? answer in dollars…
A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
Q: Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years.…
A: Initial cost (C) = $100000 Annual cashflow (A) = $25000 n = 5 years r = 9% Let IRR = i
![If you invest $131,300 in a project which yields an annual return of $25,400, how many years will it
take to recover your investment if the annual interest rate is 5.5%?
a. 8
O b. 5
О с. 7
d. 6
е. 9](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32cd0482-9784-469b-8a33-2ed71a2e9309%2Fb1e021e4-104c-476c-872b-196e8d27dd73%2Fvovlckq_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 4 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%What is the present value (PV) of an investment that will pay $600 in one year's time, and $600 every year after that, when the interest rate is 12%? ..... A. $5,000 В. $3,000 С. $2,500 D. $4,000What is the rate of return (the interest rate) on an investment today of $30,626.24 if the company expects to receive $45,000 in 5 years? а. 9% O b. 8% С. 6% d. 7%
- 4. If you invest $12,000.00 today, how much will you have in the future under each of the following independent scenarios: 10 years at 9% 8 years at 12% 14 years at 15% 24 years at 10% Present Value (PV) Rate Time (Years) Future Value (FV) A $12,000.00 9% 10 ? B $12,000.00 12% 8 ? C $12,000.00 15% 14 ? D $12,000.00 10% 24 ? PLEASE NOTE: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Use the future value of $1 table in the Appendix B PV FV Tables Appendix B PV FV Tablesand verify that your answers above are correct: PV Rate Time (Years) FV Factor (from Table) Future Value (FV) A $12,000.00 9% 10 ? ? B $12,000.00 12% 8 ? ? C $12,000.00 15% 14 ? ? D $12,000.00 10% 24 ? ? PLEASE NOTE: All FV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67).8. How much would you invest today in order to receive $30,000 in each of the following independent scenarios: 10 years at 9% 8 years at 12% 14 years at 15% 24 years at 10% complete the following table: Present Value (PV) Rate Time (Years) Future Value (FV) A ? 9% 10 $30,000.00 B ? 12% 8 $30,000.00 C ? 15% 14 $30,000.00 D ? 10% 24 $30,000.00 PLEASE NOTE: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Use the present value of $1 table in the verify that your answers above are correct: Future Value (FV) Rate Time (Years) FV Factor (from Table) Present Value (PV) A $30,000.00 9% 10 ? ? B $30,000.00 12% 8 ? ? C $30,000.00 15% 14 ? ? D $30,000.00 10% 24 ? ? PLEASE NOTE: All PV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67).5. a. b. C. d. e. Your investment advisor wants you to purchase an annuity that will pay you RM 25,000 per year for 10 years. If you require a 7% return, what is the most you should pay for this investment? (FVIF: 1.9672, FVIFA: 13.8164, PVIF: 0.5083, PVIFA: 7.0236) RM 241,787 RM 175, 590 RM 122,913 RM 225,682 RM 345,410
- Solve ASAPQ. # 3 : An investment of $1000 grows to $2000 in 7 years. What is the annual rate of return on the investment ?In one year’s time, you plan to invest a certain sum of money that will grow to R100 000 ten years after making the investment. If you can obtain a rate of return of 11% per annum, what is the present value of the investment today (rounded to the nearest Rand)? a. R31 728 b. R35 600 c. R30 000 d. R35 218 e. R33 500What is the future value of an investment if you deposit $100 annually for 5 years at an interest rate of 10%? 615.5 612.2 605.8 610.5
- Q7: You have just received OMR200M from a bank by requesting a loan. Without any deduction you have intended to invest the amount in a project. At the end of investment period the project will provide you 250M with the interest rate of 10%. a) Find out the number of years for this investment. b) What will be future value from the founded number of years in part (a) if the interest rate changes from 10% to 8%. c) What will be present value if the interest rate is 12%? d) What will be the future value if the number of year is 8 and interest rate is 9%? e) What will be present value if the interest rate is 5% and number of period is 8 compounded Semi-annually?How much would you be willing to pay today for an investment that would return P1,250 each year for the next 10 years, assuming a discount rate of 12 percent? A. P4,062.75B. P5,062.75C. P6,062.75D. P7,062.75E. None of the aboveIf you invest $12,000.00 today, how much will you have in the future under each of the following independent scenarios: 10 years at 9% 8 years at 12% 14 years at 15% 24 years at 10% Present Value (PV) Rate Time (Years) Future Value (FV) A $12,000.00 9% 10 B $12,000.00 12% 8 C $12,000.00 15% 14 D $12,000.00 10% 24 PLEASE NOTE: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). PV Rate Time (Years) FV Factor (from Table) Future Value (FV) A $12,000.00 9% 10 B $12,000.00 12% 8 C $12,000.00 15% 14 D $12,000.00 10% 24 PLEASE NOTE: All FV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67).