Incremental Net Incresental Operating Income Net Cash Flows $ 70, 000 $ 76,000 $ 87,000 $ 50,000 $ 92,000 $ 152,000 $ 155,000 $ 165,000 $ 152, 000 $ 154,000 sh flows occur uniformly throughout a year except for the initial investment. ck period of this investment is closest to: (Round your answer to 1 decimal place.) pie Cholce ) 5.0 years 21 years 4.3 years 27 years

Incremental Net Incresental Operating Income Net Cash Flows $ 70, 000 $ 76,000 $ 87,000 $ 50,000 $ 92,000 $ 152,000 $ 155,000 $ 165,000 $ 152, 000 $ 154,000 sh flows occur uniformly throughout a year except for the initial investment. ck period of this investment is closest to: (Round your answer to 1 decimal place.) pie Cholce ) 5.0 years 21 years 4.3 years 27 years

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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For the cash flow revenues shown below, find the value of G that makes the equivalent annual worth in years 1 through 7 equal to $500. The interest rate is 6.00% per year. (Round the final answer to three decimal places.) Cash flow, $ Year 0 1 2 3 The value of G is $ 225.0 225.0+ G 225.0+2G Year 4 5 16 Cash flow, $ 225.0+36 225.0+4G 225.0+5G 225.0+66
Internal Rate of Return A project is estimated to cost $244,296 and provide annual net cash flows of $58,000 for five years. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interest table shown above.fill in the blank 1 %
Internal Rate of Return A project is estimated to cost $350,265 and provide annual net cash flows of $57,000 for 10 years. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 1 0.909 0.893 0.870 0.833 1.833 1.690 1.528 1.736 1.626 2.673 3 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.352 2.991 4.355 4.111 3.784 3.326 6 4.917 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interest table shown above. %
Question content area top Part 1 (IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $13,000 resulting in a single free cash flow of $17,165 after 9 years b. An initial outlay of $13,000 resulting in a single free cash flow of $46,394 after 15 years c. An initial outlay of $13,000 resulting in a single free cash flow of $105,001after 25 years d. An initial outlay of $13,000 resulting in a single free cash flow of $13,653 after 4 years
8. Assume a $90,000 investment and the following cash flows for two alternatives: Year 1 2 3 4 5 Investment Investment A B $25,000 30,000 25,000 19,000 25,000 $40,000 40,000 28,000 a. Calculate the payback for Investments A and B. b. If the inflow in the fifth year for Investment A was $25,000,000 instead of $25,000, would your answer change under the payback method?
What is the most you should pay to receive the following cash flows if your required rate of return is 10 percent? Year 1-3 $5,000 Year 4-6 Year 7-9 Years 10 $46,878.34 O $50,009.84 $40,639.31 $55,687.75 $52,439.73 $47,202.31 $8,000 $12,000 $15,000
MC Qu. 9 What amount of cash would result at the end ...What amount of cash would result at the end of one year, if $16,000 is invested today and the rate of return is 8%? (Do not round your PV factors.)a-$16,000b-$17,120c-$17,280d-$14,720ReferencesMultiple ChoiceMC Qu. 9 What amount of cash would result at the end ... Please don't provide answer in image format thank you
nment 4 i es For the cash flow diagram shown, the future worth in year 4 is closest to i=7%/semiannual period 2 3 4 5 470 420 370 Multiple Choice <$2,800. $2.915. 320 $3,735. 3 6 270 220 8 200 Years Semiannual periods
Single cash flow End of period (years) Case Discount rate $ 7,000 28,000 10,000 150,000 12% 4 8 20 14 12 11 6 45,000 20 8. P4-12 Present value concept Answer each of the following questions. a. What single investment made today, earning 12% annual interest, will be worth $6,000 at the end of 6 years? b. What is the present value of $6,000 to be received at the end of 6 years i the discount rate is 12%? ABCAE
Problem No. 3 The cash flows for an investment are shown below: Year 1 3 4 5 Cash flow $1400 1500 1600 1700 -3,000 Calculate EUAB at 7% per year. $2000 $1800 $1600 $1400 $1200 $1200
ces Year 0 1 Cash Flow (A) -$430,000 41,500 2 64,500 3 81,500 4 545,000 Cash Flow (B). -$ 42,500 20,900 12,800 21,100 17,900 The required return on these investments is 10 percent. a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e. d. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161. e. Based on your answers in (a) through (d), which project will you finally choose? a. Project A Project B b. Project A Project B years years Q Search < Prev 5 of 5 Next L
5-8 present and future values of a cash flow stream.An investment will pay $100 at the end of each of the next 3years $200 at the end of year 6. If other investment of equal risk earn 5% annually what is it's present value? it's future value

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