(Related to Checkpoint 6.6) (Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: End of Year 1 2 3 4 5 6 7 8 A $12,000 12,000 12,000 12,000 12,000 Investment Alternatives В $12,000 12,000 12,000 12,000 C $12,000 60,000 a. What is the present value of investment A at an annual discount rate of 25 percent? (Round to the nearest cent.)

(Related to Checkpoint 6.6) (Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: End of Year 1 2 3 4 5 6 7 8 A $12,000 12,000 12,000 12,000 12,000 Investment Alternatives В $12,000 12,000 12,000 12,000 C $12,000 60,000 a. What is the present value of investment A at an annual discount rate of 25 percent? (Round to the nearest cent.)

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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(Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: End of Year 1 NO456TO 2 3 7 8 S A $13,000 13,000 13,000 13,000 13,000 Investment B S $13,000 13,000 13,000 13,000 (Round to the nearest cent.) C a. What is the present value of investment A at an annual discount rate of 25 percent? $37227.32 (Round to the nearest cent.) $18.000 b. What is the present value of investment B at an annual discount rate of 25 percent? 54.000 c. What is the present value of investment C at an annual discount rate of 25 percent? (Round to the nearest cent.)
(Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: End of Year 1 2 567356 4 8 A $13,000 13,000 13,000 13,000 13.000 Investment B $13,000 13,000 13,000 13,000 C $18,000 54,000 a. What is the present value of investment A at an annual discount rate of 22 percent? $ 37227.32 (Round to the nearest cent.) b. What is the present value of investment B at an annual discount rate of 22 percent? (Round to the nearest cent.)
(Related to Checkpoint 6.6) (Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment Alternatives End of Year 1 2 3 4 5 6 $ 780 A $ 19,000 19,000 19,000 19,000 19,000 B $19,000 19,000 19,000 19,000 19.000 C $19,000 95,000 a. What is the present value of investment A at an annual discount rate of 23 percent? $ 53265.99 (Round to the nearest cent.) b. What is the present value of investment B at an annual discount rate of 23 percent? (Round to the nearest cent.) ..
Calculate the EAR of the following investment, entered as a percentage (Example: if your answer is 0.145, enter 14.5) Year Number Cashflow 0 -11400 1 3500 2 3000 3 3100 4 2800 Your Answer:
(Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment Alternatives End of Year 1 2 4677AWN 3 5 8 A $10,000 10,000 10,000 10,000 10,000 B $10,000 10,000 10,000 10,000 C $10,000 50,000 a. What is the present value of investment A at an annual discount rate of 21 percent? (Round to the nearest cent.) b. What is the present value of investment B at an annual discount rate of 21 percent? (Round to the nearest cent.) C. What is the present value of investment C at an annual discount rate of 21 percent? (Round to the nearest cent.)
You are asked to evaluate an investment project with the following cash flows: Year 1 234. 2 4 Cash Flow $800 1,090 1,350 1,475 a. If the discount rate is 7 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 25 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 7% b. Present value at 17% c. Present value at 25% $ 3,926.98
Hi can you help with this question please? An investment has the following cash flow profile. For each value of MARR below, what is the minimum value of X such that the investment is attractive based on an internal rate of return measure of merit? EOY 0 1 2 3 4 Cash Flow $(30,000.00) $ 6,000.00 $ 13,500.00 $X $ 13,500.00 MARR is 12 percent/year
elated to Checkpoint 6.6) (Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment Alternatives End of Year 1 2 3 4 5 6 7 8 9 A $12,000 12,000 12,000 12,000 12,000 $12,000 12,000 12,000 12,000 12.000 C $ 12,000 60,000 a. What is the present value of investment A at an annual discount rate of 22 percent? $36271.36 (Round to the nearest cent.) b. What is the present value of investment B at an annual discount rate of 22 percent? (Round to the nearest cent.) c. What is the present value of investment C at an annual discount rate of 22 percent? (Round to the nearest cent.)
(Related to Checkpoint 6.6) (Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: End of Year 1 2 3 4 5 6 7 8 9 10 A $10,000 10,000 10,000 10,000 10,000 Investment Alternatives B $10,000 10,000 10,000 10,000 C $10,000 50,000 10,000 10,000 (Click on the icon in order to copy its contents into a spreadsheet.) Assuming an annual discount rate of 23 percent, find the present value of each investment. 10.000
Problem #2: Consider an investment where the cash flows are: - $920.33 at time 1 = 0 (negative since this is your initial investment) S407 at time = 1 in years $222 at time = 2 in years $426 at time = 3 in years (a) Use Excel's "Solver" to find the internal rate of return (IRR) of this investment. Take a screen shot showing Solver open with your entries for the function clearly visible. Paste the screen shot into an application (like Paint), and save it as a (.png) file. Upload your screenshot below. (b) What is the value of IRR found by Solver?
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as fo Investment End of Year C $ 2,000 $1,000 $4,000 2. 3,000 1,000 4,000 4,000 1,000 (4,000) (4,000) 14,000 4 (5,000) 1,000 5,000 (Click on the icon in order to copy its contents into a spreadsheet.) 4,000 What is the present value of each of these three investments if the appropriate discount rate is 14 percent? a. What is the present value of investment A at an annual discount rate of 14 percent? %24 (Round to the nearest cent.) %24
Damien offers you a sequence of end-of-year cash flows for an investment as follows: Year 1 2 3 4 4 What is the value of the cash flows if the opportunity cost is 6 percent? (Round to the nearest dollar). Please click on the following link to access a blank worksheet Click to open:: O $8.392 $8.598 Cash Flow $4,000 $3,000 $2,000 $1,000 $8.734 $8.915

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