If you invest $5,000 today, you will receive $1,000 in a year, $1,500 each in year 2 and year 3, and $2,000 each in year 4 and year 5. If you require a 10% annual return, should you take the investment.

Q: ,what is the NPV of this​ investment?

A: Net Present Value: It is a measure of profitability and shows the absolute profit or loss made from…

Q: You expect to receive $26,000 at graduation in two years. You plan on investing it at 9.25 percent…

A: Present Value = $26,000  Future Value = $161,000  Rate (r) = 9.25%

Q: You just purchased a parcel of land for $10,000. If you expect a 12% annual rate of return on your…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: t be until this occurs?

A: To calculate the years will it be to recieve $ 60,000 from $9,000 at 10% , the formual to be applied…

Q: Nikole has already saved $20,900 in her RRSP today. Suppose she plans to continue adding $1,994 at…

A: The monthly rate of return refers to the minimum return to be earned by the investors on the…

Q: what will your retirement investment be worth 34 years from now ? Using financial calculator

A: Future value i.e. FV of an annuity due shows the worth of total amount of regular payments made at…

Q: You invest $12,650 in a project today. You expect to receive cash flows $3,200, $5,160, $4,288,…

A: Discounted payback period is calculated as number of years required for a project to recover the…

Q: A perpetuity pays an annual dividend of $25. If you want to earn a 10% rate of return on this…

A: In this question we require to calculate the amount we should pay for the perpetuity i.e. we need to…

Q: You have $3000 today, and you expect to receive $1000 at the end of the next three years,…

A: Present Value = pv = $3000Payment = p = $1000Time = t = 3Interest Rate = r = 8%

Q: You invest in a project that is expected to generate fixed annual cashflows for 4 years beginning in…

A: The movement of funds into and out of a financial system or firm over a predetermined length of time…

Q: Assume that you purchase a property for $2,000,000 and it generates $15,000 per month of rental…

A: The income that is collected from an investment is then divided by the amount of time that the…

Q: Today (t=0), you invested the starting prinipal of 1536 dollars. At the end of the first, second and…

A: NPV is one of the capital budgeting method based on the time value of money and can be found as the…

Q: You will receive $4,000 three years from now. The discount rate is 10 percent.  a) What is the…

A: In the given question we need to compute the value of investment after two years and one year from…

Q: You expect to receive $10,000 in two years. You plan on investing it at 9 percent until you have…

A: Amount invested = a = $10,000 Interest rate = r = 9% Future value = $75,000 Time before investment =…

Q: You want to fund an endowment that will spit off $500,000 next year, and want that to grow at 2% a…

A: Cash Flow = cf = $500,000Growth Rate = g = 2%Rate of Return = r = 7%

Q: You are considering a 10 year investment plan in which your target is $150,000. There are two…

A: We have to find the annuity that will result into a target FV after a pre determined time period.

Q: Present Value You will require $700 in 5 years. If you earn 5% interst on your funds, how much will…

A: The computation is as follows: Hence the present value is $548.47.

Q: Chris offers you an investmet where if ou investment where if you invest $1,000 today, he'll return…

A: The annual rate of return refers to the yield earned on an investment over the course of one year.…

Q: Now, drawing on your understanding of the concept of present value, calculate how much you would…

A: Present value is the discounted value of future cashflow

Q: You will receive $5,000 in six years.  When you receive it, you will invest it for 7 more years at…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a…

Q: comma 900 in one year. If your cost of capital is 7.6 %, what is the NPV of this investment?

A: The net present value calculation aids in determining whether an investment will yield a higher…

Q: Your plan is to have $40,000 in your account, 13 years from today. You can invest in an account that…

A: Future value required (FV) $40,000 Interest rate = 8.05% Monthly interest rate (r) = 8.05%/12 =…

Q: You will recieve $4000 three years from now. The discount rate is 10 percent.  c) What is the value…

A: We need use present value formula to solve this problem. Present Value =Future value/(1+r)n Where…

Q: I expect to save $100,000 in 15 years for my kid's college savings account. Assuming I get a return…

A: Discounting is a technique to compute the present value (PV) of future cashflows by using an…

Q: You want to begin saving for your daughter’s college education and you estimate that she will need…

A: Time value of money is one of useful concept being used in finance. It says that amount invested…

Q: Now, drawing on your understanding of how to calculate present value of future  investment,…

A: interest rate = 12% cumulative present value factor for 10 years = 5.650 future value of investment…

Q: You have been offered a unique investment opportunity. If you invest $10,400 today, you will receive…

A: NPV = Present value of future cash inflows - Initial investment   Calculation of present value of…

Q: You are scheduled to receive $27,000 in two years. When you receive it, you will invest it for 7…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: An investor has developed projections for an investment that will generate the following stream of…

A: The future value of cash flows will be reflective of the compounded value of investment in the…

Q: You are evaluating a growing perpetuity product from a large financial services firm. The product…

A: here is the formula for calculating the present value of growing perpetuity PV = A/(r-g) where…

Q: A 10-year investment will pay $2,500 at the end of this year, and the payments will grow at a rate…

A: Answer: Given data, Future value = $2,500 Required rate of return = 15% Paymets grow @ 5% per year

Q: You will invest in something that will give you a payment of $211 two times each year.  You plan to…

A: Step 1 An annuity is a contract that you have with an insurance provider that calls for periodic…

Q: At the end of each year for the next 18 years you will receive cash flow of $3700 the initial…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: will save $1,400 a year in enses. These savings will What is the NPV of the inve en the cost of…

A: Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PBP)…

Q: Your goal is to spend a year traveling around the world.  You assume that it will cost $100,000 to…

A: Future value = fv = $100,000 Time = t  =10 years Present value = pv = $10,000

Q: An investor plans to invest $500 a year and expects to get a 10.5% return. If the investor makes…

A: Formula to be used,   PV = P[1-(1+r)^-n]/r where, PV=Present value P=Principal amount r=Rate of…

Q: You are considering an investment that will pay you $1,200 per month for three years. The first…

A: An annuity is a series of equal payments occurring at regular intervals. The present value is…

Q: You would like to have $19,928 in 12 years. If the rate is 8.45%, how much do you have to invest…

A: Future value required (FV) = $19928 Interest rate (r) = 8.45% Number of annual deposits (n) = 12