Ltd has made an investment that is expected to generate a cas ch year for the next five years. If Obama uses a discount rate of the present value of this investment for Obama is (to the nearest b. S101,766 с. $101,154 d.

Q: Revenue from a project is expected to be $7000 per year in real terms (i.e. an identical project…

A: Real Value (P) = $7,000Inflation rate (r) = 2.4% or 0.024Number of years (n) = 8

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A: Present Value = pv = $6000Interest rate = r = 10%Future Value = fv = $33,359

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

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A: Rate of return refers to the percentage of earning from the investment or the purchase of the…

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A: Since you have asked a multiple subpart question, we will answer the first three subparts for you.…

Q: I want to answer this question

A: To find the fair value of the investment, we use the formula for the present value of a growing…

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A: Given Amount of deposit $2500. rate 8.5% for 20 years.

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A:

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A: The question is based on the concept of Financial Management.

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Q: Sagar

A:

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A: Discounted payback period The discounted payback period is the period taken for the initial…

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.