Question 1: A company invested $ 800,000 in a project, if the interest rate is 12% per year compounded quarterly, find the quarterly income required to recover the investment in 3 years?

Q: Problem #6: An investor pays $375,000 for a mine that will produce level annual revenue for 23…

A:

Q: Mike Derr Company expects to earn 12% per year on an Investment that will pay $616,000 six years…

A: Answer :Present value=?=?[1/(1+ rate) ^time]Future value = $616,000Rate = 8%Time = 7  yearsPresent…

Q: Part II - Average Rate of Return (Ch 26) The management of River Corporation is considering the…

A: concept. average rate of return can be calculated in two ways:- 1. on basis of initial investment.…

Q: A project has an initial cost of $35,000, expected net cash inflows of $11,000 per year for 8 years,…

A: ayback period (PBP) refers to the period or duration within which the company is able to recover the…

Q: 1)   What amount invested each year at 3% annually will grow to $200,000 at the end of 25 years?…

A: Future value = $200,000 Interest = 3% Time =25 years So, amount invested each year = Using excel PMT…

Q: Your company will generate $75,000 every 3-months for the next seven years from a new project.…

A: Given a certain rate of return, present value (PV) is the current worth of a future sum of money or…

Q: Consider an investment with an initial cost of $10,000 and uniform annual revenue of $2,500 per year…

A: The Internal Rate of Return (IRR) is a financial measure that gauges investment profitability by…

Q: Payback A project has an initial cost of $67,275, expected net cash inflows of $11,000 per year for…

A: ayback period (PBP) refers to the period or duration within which the company is able to recover the…

Q: 4. Timber Inc. invested profits of $160,000.00 in a GIC at 4.12% compounded semi-annually. How long…

A: Compound = Semiannually = 2Present Value = pv = $160,00Interest Rate = r = 4.12 / 2 = 2.06%Future…

Q: ABC deposits $30,000 at the end of every quarter to save up $550000 for a capital project in 4…

A: The nominal return refers to the return quoted to the investor and does not consider the effect of…

Q: ou have invested 7 million dollars for a horizon of 24 months. You will be paid interest at 7.80%…

A: Future value refers to the value of the current asset on some future date based on the growth…

Q: #1: An investment will cost $10,000 today for equipment plus expenses for labor and materials at a…

A: Discounted payback period is a capital budgeting tool. Here we look at the time period that it takes…

Q: What annual interest rate must be obtained to accumulate $10,000 in 8 years on an investment of…

A: The interest rate is compounding quarterly. Hence, it is important to understand that, annual rate…

Q: At what interest rate must $112,000 be invested so that it will be worth $392,000 in 14 years?

A: We use rate function to calculate interest rate

Q: What is the present value of an investment that will generate $100,000 in the first year, $200,000…

A: Present value of each cash flows is calculated in the excel below using cost of capital as 5%.Note:…

Q: How many years are required for P 1,000 to increase to P 2,000 if invested at 9% per year compounded…

A: Future value is obtained by compounding the present value using the appropriate rate of interest.

Q: An investment required an initial payment of $10,000 and annual payments of $1,500 at the end of…

A: First we need to calculate present value of total outflows PV of outflows =initial payment +PMT…

Q: Approximately what interest rate would be needed in order to grow and investment of $1400 to $2500…

A: The interest rate that will grow a given investment into a target value over the length of…

Q: 6. a) What capital should be invested now at 12.69% annually, compounded every two months to have…

A: TVM refers to the concept that considers the effect of money's interest-earning capacity, which…

Q: An investor pays $245,000 for a mine that will produce level annual revenue for 18 years. What…

A: Level annual revenue is the term used to describe an amount of income that is consistently created…

Q: B/A company's interest rate for acquiring outside capital is 6% compounded annually. If $20,000 must…

A: The future value is the compounding value of the present value compounded at a given interest rate…

Q: Use the present value formula to determine the amount to be invested​ now, or the present value…

A: Present value is the value of an asset in today’s time. It the value which is worth today. It helps…

Q: Microsoft Co. places 150,000 in an investment that has a return of 8%.     The investment is placed…

A: given, PV = 150,000 r=8% n = 12 years withdrawal year = 6

Q: Intro A project requires an initial investment of $77.4 million to buy new equipment, and will…

A: The IRR method is used to measure the profitability of a project. It uses the NPV formula but…

Q: Question 4: A project is expected to generate cash flows of $3,000, $4,000, and $5,000 at the end of…

A: The present value is computed for the future cash inflows or cash outflows. It is computed by…

Q: A company plans to purchase an asset in four years at a price of $180,000. How much has to be…

A: The formula for compound interest: Final Amount=Principal×1+ratetime