(algorithmic)Choose the closest answer below.O Points: 0 of 1KIf you invest $4,874 in a long-term venture, you will receive $1,035 per year forever. Assuming your interest rate is 11%per year, what is the capitalized worth of your investment?OA. The capitalized worth of your investment is $4,764.OB. The capitalized worth of your investment is $4,535.OC. The capitalized worth of your investment is $3,934.OD. The capitalized worth of your investment is $3,942.Save

Formula to calculate the capitalized worth of investment is:CW = A/iwhere CW is the capitalized…

If you invest $4,874 in a long-term venture, you will receive $1,035 per year forever. Assuming your interest rate is 11% per year, what is the capitalized worth of your investment? Choose the closest answer below. OA. The capitalized worth of your investment is $4,764. OB. The capitalized worth of your investment is $4,535. C. The capitalized worth of your investment is $3,934. OD. The capitalized worth of your investment is $3,942.

If you invest $4,874 in a long-term venture, you will receive $1,035 per year forever. Assuming your interest rate is 11% per year, what is the capitalized worth of your investment? Choose the closest answer below. OA. The capitalized worth of your investment is $4,764. OB. The capitalized worth of your investment is $4,535. C. The capitalized worth of your investment is $3,934. OD. The capitalized worth of your investment is $3,942.

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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Similar questions

If you invest $15,000 in a long-term venture, you will receive $1,100 per year forever. The first earning is given two years after embarking on such investment Aside from the annual earnings, an additional $500 is earned every six years. Assuming your interest rate is 10% per year, what is the capitalized worth of your investment.
Suppose an investor is interested in purchasing the following income producing property at a current market price of $ 1,490,000. The prospective buyer has estimated the expected cash flows over the next five years to be as follows: Year 1 = $88,000, Year 2 = $90,662, Year 3 = $91,923, Year 4 = $95,778, Year 5 = $97,000. Assuming that the required rate of return is 15% and the estimated proceeds from selling the property at the end of year five is $1,860,000, what is the NPV of the project? What is the IRR of the project?
You have been offered a unique investment opportunity. If you invest $8,900 today, you will receive $445 one year from now, $1,335 two years from now, and $8,900 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 6.7% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.7% per year? Should you take it now?
If you invest $15,000 in a long-term venture, you will receive $1,100 per year forever. The first earning is given two years after embarking on such investment Aside from the annual earnings, an additional $500 is earned every six years. Assuming your interest rate is 10% per year, what is the capitalized worth of your investment.
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Assume that at the beginning of the year, you purchase an investment for $6,300 that pays $130 annual income. Also assume the investment's value has increased to $6,900 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places. Rate of return % b. Is the rate of return a positive or a negative number? Positive Negative
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You plan to invest $9.9 into an investment that you hope will earn a return of 12.01%. You will withdraw your money in 5 years. How much will you withdraw? Answer:
You are looking at investing in undeveloped land that you expect might be worth $2138713 in 9 years. Based on the risk of the property, you require a return of 8.85%. What is the most you should be willing to pay for it today? enter only numbers and decimals in your response. Round to 2 decimal places. Use your financial calcuator.
You are offered a 3 year investment opportunity that requires investing USD 1,505 today. The investment will pay you an income of USD 66 in year 1. USD 76 in year 2 and USD 73 in year 3. At the end of year 3, it will also pay a total sum of USD 2,227. THE current discount rate is 0.13 percent. Is the investment worth undertaking? Give your answer in 0.000.
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You have recently inherited a sum of $100,000. The current market rate is 5% p.a. and you are thinking of investing the $100,000 in a way that you will be able receive $6,000 every year indefinitely. Will you be successful?

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