For each of the investments below, calculate the rate of return earned over the period.InvestmentABCDECash Flow During Beginning-of-Period End-of-Period ValuePeriodValue- $40013,0004,000601,700$1,700140,00060,00080014,500$800117,00046,00040012,600

Rate of return is percentage amount of profit earned on investment and it is sum of cash flow and…

Answered: Investment Cash Flow During Period…

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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Q6.1
Problem 07.037 - MIRR calculation For the net cash flow series, find the external rate of return (EROR) using the MIRR method with an investment rate of 20% per year and a borrowing rate of 10% per year. Year Net Cash Flow, $ The external rate of return is 1 4,000 2 -3,000 3 -7,000 4 12,000 5 -700
Assume a $290,000 investment and the following cash flows for two products: Year Product X 1 A234 4 $ 100,000 100,000 75,000 40,000 Product Y $ 90,000 100,000 Product X Product Y 80,000 40,000 a. Calculate the payback for products X and Y. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. years years b. Which alternative would you select under the payback method? Product X is selected O Product Y is selected
For each of the investments below, calculate the rate of return earned over the period. Cash Flow During Period - $900 14,000 5,000 70 1,500 (Click on the icon here in order to copy the contents of the data table above into a spreadsheet.) Investment A B C D E Beginning-of-Period End-of-Period Value Value $1,400 140,000 55,000 500 14,000 $400 115,000 49,000 200 12,600
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
What is the present value of the following cash flow stream at a rate of 6.25%? $411.57 $433.23 $456.03 $480.03 $505.30
J7
QUESTION 1 For the below Cash Flow, find the total PW value using 10% interest rate years 0 1 2 3 4 5 6 cost $ 2,719 1,000.00 3,010 4,000.00 1,000.00
Find the NPV for the following cash flows assuming a WACC of 10%. YR CF 0 -15,000 1 6,000 2 4,000 3 2,000 4 3,000 5 2,000
Clearcast Communications Inc. is considering allocating a limited amount of capital investment funds among four proposals. The amount of proposed investment, estimated operating income, and net cash flow for each proposal are as follows: Operating Income Net Cash Flow Investment Year Proposal A: $450,000 $ 30,000 1 $120,000 2 30,000 120,000 3 20,000 110,000 4 10,000 100,000 (30,000) $ 60,000 $ 60,000 40,000 60,000 $510,000 $100,000 Proposal B: $200,000 1 80,000 3 20,000 60,000 4 (10,000) 30,000 (20.000) $ 90,000 20.000 $290,000 (Continued)
($ thousands) Present value at 19% Net cash flow Net present value 0 1 4 -13,700 -1,594 -13,700 -1,339 3,541 (sum of PVs). Period 2 3 6 3,057 6,433 10,644 10,095 5,867 2,159 3,817 5,308 4,230 2,066 5 7 3,379 1,000 Restate the above net cash flows in real terms. Discount the restated cash flows at a real discount rate. Assume a 19% nominal rate and 11% expected inflation. NPV should be unchanged at +3,541, or $3,541,000. Note: Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest whole number. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Real Net Cash Flows NPV
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Investment Cash Flow During Period ABCDE - $400 13,000 4,000 60 1,700 Beginning-of-Period End-of-Period Value Value $1,700 140,000 60,000 800 14,500 $800 117,000 46,000 400 12,600