Kayla has shopped around for the best interest rates for depositing $100,000 over the next year. The table below shows the available outcomes of it; Nominal rateCompounding3.14%Annual 2.90%Semi-annual Which investment offers Kayla the highest effective annual rate of return? Show workings.
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- An investment promises to pay $6,000 at the end of each year for the next three years and $4,000 at the end of each year for years 4 through 7. Use Table II and Table IV or a financial calculator to answer the questions. Round your answers to the nearest cent. If you require a 11 percent rate of return on an investment of this sort, what is the maximum amount you would pay for this investment?$ Assuming that the payments are received at the beginning of each year, what is the maximum amount you would pay for this investment, given a 11 percent required rate of return?$An investment promises to pay $5,000 at the end of each year for the next four years and $3,000 at the end of each year for years 5 through 8. Use Table II and Table IV or a financial calculator to answer the questions. Round your answers to the nearest cent. If you require a 9 percent rate of return on an investment of this sort, what is the maximum amount you would pay for this investment?$ Assuming that the payments are received at the beginning of each year, what is the maximum amount you would pay for this investment, given a 9 percent required rate of return?$An investment promises to pay $7,000 at the end of each year for the next six years and $3,000 at the end of each year for years 7 through 10. Use Table II and Table IV or a financial calculator to answer the questions. Round your answers to the nearest cent. If you require a 15 percent rate of return on an investment of this sort, what is the maximum amount you would pay for this investment?$ Assuming that the payments are received at the beginning of each year, what is the maximum amount you would pay for this investment, given a 15 percent required rate of return?$
- Determine the effective annual yield for each investment. Then select the better investment. 2.98% compounded semiannually; 2.97% compounded monthly Click the icon to view some finance formulas. Select the correct choice below and fill in the answer boxes within your choice. (Round to the nearest hundredth as needed.) % and the O A. The second investment, 2.97% compounded monthly, is the better investment because the effective annual yield for the first investment is effective annual yield for a 2.97% compounded monthly investment is %. O B. The first investment, 2.98% compounded semiannually, is the better investment because the effective annual yield for the first investment is effective annual yield for a 2.97% compounded monthly investment is %. % and theSteffi Derr expects to invest $5,000 annually that will earn 10%. How many annual investments must Derr make to accumulate $92,656 on the date of the last investment? (PV of $1. FV of $1. PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places. Future Value Annuity Payment Table Factor Annual Investments investmentsComplete the following analysis of investment alternatives and select the preferred alternative. The study period is three years and the MARR = 15% per year. Alternative Alternative Alternative A B C Capital investment Annual revenues Annual costs Market value at EOY 3 PW (15%) Click the icon to view the interest and annuity table for discrete compounding when i=15% per year. OA. Alternative A OB. Alternative C OC. Alternative B OD. Do Nothing $11,000 3,900 240 4,900 578 The PW of the alternative B is $ (Round to the nearest dollar.) Select the preferred alternative. Choose the correct answer below. $15,000 6,500 450 6,100 ??? $13,100 5,500 400 2,800 385
- Develop the two-way table for annual investment amounts of $5,000 to $20,000 in increments of $1,000 and for returns of 0% to 12% in increments of 1%. Using the table, what are the minimum annual investments Lindsay must contribute (in dollars) for annual rates ranging from 7% to 11% to accrue a final value of $1,400,000 after 30 years. (Round your answers up to the nearest thousand dollars.) Quantity Ordered Annual Return Minimum Annual Investment 7% 8% 9% 10% 11% $ $ $ $ $Using Table 1-1 onpage 19, calculate the following:(a) The future value of lump-sum investment of $4,000 in four years thatearns 5 percent.(b) The future value of $1,500 saved each year forthree years that earns 6 percent.(c) A person who invests $1,200 each year finds onechoice that is expected to pay 3 percent per yearand another choice that may pay 4 percent. Whatis the difference in return if the investment is madefor four years?(d) The amount a person would need to deposit todaywith a 5 percent interest rate to have $2,000 inthree years.Buena Vision Clinic is considering an investment that requires an outlay of 600,000 and promises a net cash inflow one year from now of 810,000. Assume the cost of capital is 10 percent. Required: 1. Break the 810,000 future cash inflow into three components: a. The return of the original investment b. The cost of capital c. The profit earned on the investment 2. Now, compute the present value of the profit earned on the investment. 3. Compute the NPV of the investment. Compare this with the present value of the profit computed in Requirement 2. What does this tell you about the meaning of NPV?
- Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 8%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?Interest rate (with changing years). Keiko is looking at the following investment choices and wants to know what annual rate of return each choice produces. a. Invest $420.00 and receive $879.72 in 9 years. b. Invest $3,400.00 and receive $11,161.14 in 15 years. c. Invest $32,893.92 and receive $140,000.00 in 24 years. d. Invest $31,322.65 and receive $1,300,000.00 in 45 years. a. What annual rate of return will Keiko earn if she invests $420.00 today and receives $879.72 in 9 years? % (Round to two decimal places.)I NEED TO SOLVE THİS USIİNG EXCEL Suppose you invest into Fund X for 15 months with a monthly interest rate of 8%. Each month you pay $260 calculate the ending value in the red shaded area. 1 Suppose you found the Ending Value. You would like to observe the Ending Value for various monthly payments which are $100, $200, $300, and $400 Create one-way data table to see the annual payments for the interest rates in green shaded area. 2 4 5 INVESTMENTS Years Left 6 Fund X Monthly Payment ($260) Interest Rate Ending Value 15 8% 7 8 (100.00) (200.00) (300.00) (400.00) 10 $ 11 $ 12 $