Problem #6: An investor pays $375,000 for a mine that will produce level annual revenue for 23 years. What should the level annual revenue be (received at the end of each year) if the investor is to receive 6% annual return on the investment while recovering the principal in a sinking fund earning 4.5% per year? Problem #6: Answer correct to 2 decimals.

Problem #6: An investor pays $375,000 for a mine that will produce level annual revenue for 23 years. What should the level annual revenue be (received at the end of each year) if the investor is to receive 6% annual return on the investment while recovering the principal in a sinking fund earning 4.5% per year? Problem #6: Answer correct to 2 decimals.

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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Similar questions

How much money can be withdrawn at the end of the investment period if:
If $10,000 is invested in a certain business at the start of the year, the investor will receive $3,000 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 4% per year? A. $1,068 B. $890 C. $445 D. $1424
Solve ASAP
Suppose that $70,000 is invested at 7% interest. Find the amount of money in the account after 7 years if the interest is compounded annually. If interest is compounded annually, what is the amount of money after t = 7 years? $ (Do not round until the final answer. Then round to the nearest cent as needed.)
If you invest $2,000 per year for 9 years and earn a 5% return on your investment during that period, how much will you have accumulated by the end of the nine-year period? (a) $2,000 (b) $11,970 (c) $18,000 (d) $22,054 (e) $30,000
$500,000 lent for 8 years at simple i = 11% per year. What is repayment after 8years? i) For simple interest ii) Compound interest. Which one is feasible for a project.
1. Investment in Sunrise Company is P 100,000 at the end of 5 years plus P 24,000 annually for 4 years afterwards. Investment in XYZ company offers P 50,000 semi-annually P 15,000 every 6 months after 6 years. Assume that the money is worth 9% compounded annually, which investment is preferable?
What is the present value of a perpetual stream of cash flows that pays $70,000 at the end of year one and then grows at a rate of 5% per year indefinitely? The rate of interest used to discount the cash flows is 11%. Question content area bottom Part 1 The present value of the growing perpetuity is $ enter your response here . (Round to the nearest cent.)
a)$1000 is invested in an account for six months. The interest rate is 10 % per annum. Calculate the value of the account after six month using simple interest method. b) if the initial investment is 250000 Cash flow yr.1 $20000 yr2 $130000 yr3 $240000 yr 4 $40000 yr5 $60000 Find the IRR for the project Only typing answer Please explain step by step without table and graph thankyou
2. How long until a lump-sum investment of $40,000 becomes $90,000 at 5% annual interest compounded monthly? Round your answer to the appropriate month and answer as years/months as show in the text.
If you invest $1,127 at the end of each year for 6 years and you earn 14% interest compounded annually, how much will you have accumulated to the nearest dollar? Group of answer choices $10,581 $8,802 $9,860 $9,620 ......

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