Polaris Industries has $1 million available for additional innovation on the Victory Vision motorcycle. These include five indivisible, equal-lived alternatives, each of which guarantees the investment can be exited after 6 years with the initial investment returned. In addition, each year Polaris will receive an annual return as noted below, MARR is 15% Investment Initial Investment Annual Return $350,000 $90,000 $300,000 $85,000 3 $250,000 $75,000 4. $500,000 $130,000 $400,000 $115,000 What are the present worth and internal rate of return for each investment? PW, -S PW, - $ PW, - $ PW.-$ PW, -$

Polaris Industries has $1 million available for additional innovation on the Victory Vision motorcycle. These include five indivisible, equal-lived alternatives, each of which guarantees the investment can be exited after 6 years with the initial investment returned. In addition, each year Polaris will receive an annual return as noted below, MARR is 15% Investment Initial Investment Annual Return $350,000 $90,000 $300,000 $85,000 3 $250,000 $75,000 4. $500,000 $130,000 $400,000 $115,000 What are the present worth and internal rate of return for each investment? PW, -S PW, - $ PW, - $ PW.-$ PW, -$

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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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

and
IRR;-
IRR2=
IRR3=
IRR
IRRS
Round your answers to the nearest dollar and to the nearest one-hundredth of 1%. The tolerance is+ 1 for dollar amounts and t0.01 for
percentoges.

Polaris Industries has $1 million available for additional innovation on the Victory Vision motorcycle. These include five
indivisible, equal-lived alternatives, each of which guarantees the investment can be exited after 6 years with the initial
investment returned. In addition, each year Polaris will receive an annual return as noted below, MARR is 15%
TET
Investment
Initial Investment
Annual Return
1
$350,000
$90,000
$300,000
$85,000
3
$250,000
$75,000
4
$500,000
$130,000
$400,000
$115,000
What are the present worth and internal rate of return for each investment?
PW, - S
PW, = S
PWa - $
PW.-$
PW, - $

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