Required: a. Based on cash flows given, with no other analysis, which investments would be a good investment? Which would be a bad investment? b. Based on cash flows given, and no other analysis, rank the investments based on preference/ desirability. Rank 1st, 2nd, 3rd, 4th. If ties, please explain why! c. If you analyzed the cash flows, what would you do? Briefly exp

Q: NOTE: Provide a format and show your work (example: N = 6, PV = XXX, I = X%, etc.) It is now the…

A: The number of periods is the period involved in the case. It means how much time is included. For…

Q: An engineer invests $10,000 a year for 20 years into a fund. At the end of the 20 years, how much…

A: Annual Payment = p = $10,000Time = t = 20 yearsInterest rate = r = 4%

Q: upon graduation you get a new job and start an investment program. You invest 8000 per year starting…

A: Annual deposit=$8000Period=n=35yearsInterest rate=9%Inflation=3%

Q: You have just won the state lottery and have two choices for collecting your winnings. You can…

A: Option-1: Receive $ 105,000 today The present value of option 1 will be equal to the amount to be…

Q: You are considering investing $1,000 in an investment fund at the end of every quarter for the next…

A: As per the time value of money concept, a certain amount held today is worth more than holding the…

Q: Today, Thomas deposited $130,000 in a three year, 4% investment account that compounds quarterly…

A: Future value means the future worth of the money received or paid today. The future value is…

Q: You expect to receive $11,000 at graduation in two years. You plan on investing it at 8 percent…

A: Given Information Present Value =$11,000 Future Value =$1,00,000 Interest rate = 8%

Q: The four people below have the following investments. Invested Amount Interest Rate Jerry Elaine…

A: Amount = P(1 + r/100)twhere, P = Princicipal ,  r = Rate , t = Time(i) Quaterly Compounding:In case…

Q: An engineer invests $10,000 a year for 20 years into a fund. At the end of the 20 years, how much…

A: We can determine the amount in the fund after 20 years using the formula below:

Q: You plan to invest $20,000.00 today in an equity unit trust fund expected to pay an average return…

A: Concept. Future value = A ( 1+r)n Where, A = amount invested. r = interest rate n = time period.

Q: YYou expect your retirement fund to be able to afford $40,000 a year, adjusted for 3% annual growth…

A: Payment = p = $40,000Growth Rate = g = 3%Time = t = 20Rate of Return = r = 10%

Q: You want to have $2million when you retire. You think you can earn 11% return on your retirement…

A: The question is based on the concept of present value calculation for future cash flow. Formula as,…

Q: You are contemplating investing some surplus funds and the followingoptions are available:1. Invest…

A: The objective of the question is to determine which investment option is the second best in terms of…

Q: QUESTION 2 1. You need $30,000 to buy a new Air-Con for your house in 4 years. What value you must…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: You would like to start saving for retirement. Assuming you are now 25 years old and you want to…

A: Accumulated investment refers to the value of a present asset at some future date affected by…

Q: You have just won the state lottery and have two choices for collecting your winnings. You can…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: You are contemplating investing some surplus funds and the following options are available: Show…

A: Future value refers to the estimated worth of something at a later point in time. It's commonly used…

Q: Ms. Keto invested $500 per year for 10 years and received $12,000 at the end of the 10th year. Find…

A: Yearly investment = pmt = $500Payment at end of 10 years = FV = $12,000No of years = nper = 10

Q: You are contemplating investing some surplus funds and the following options are available: 1.…

A: InvestmentRateCompoundingNumber of…

Q: You deposit $2500 each year into an investment account that earns 8.5% interest for 20 years. Find…

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

Q: How much do you need to invest today to receive $7,500 in 8 years, if you can earn 3% on your…

A: INFORMATION: RATE 3% YEARS 8 PMT (MONTHLY DEPOSIT) 0 FUTURE VALUE $7,500

Q: A. Which of the following investments is worth the most to a rational investor, and why? Assume the…

A: Year Cash flow ($) PVF @10% PV of Cash flow ($) 1 $100 0.9091 90.91 2 $500 0.8264 413.20 3…

Q: What is the future value of an investment of $1,000 paid every year for five (5) years when the…

A: Future value of amount includes the amount being deposited and amount of the compounding interest…

Q: You are contemplating investing some surplus funds and the following options are available: 1.…

A: The objective of the question is to determine which investment option would yield the second highest…

Q: 7) After with two investment options. Which investment yields the greater return over 10 years? 7%…

A: Option 1) 7% compounded monthly  Future Value = Present Value * (1+r)^nWhere,r = rate of interest…

Q: Suppose you have the opportunity to invest in a fund that pays 12% interest compounded annually.…

A: Given:workings:

Q: 2. You invest $12,000 a year in to a retirement fund starting at age 25 and continue to do so until…

A: As you have asked a question with multiple parts, we will solve the first 3 parts as per Bartleby…

Q: Consider the following investment opportunity: Capital Investment (End of Year 0) Expenses (per…

A: Because you have asked question with multiple parts, we will only solve first 3 parts as per policy…

Q: 2. Your grandfather placed $5,000 in a trust fund for you. In 12 years what will be the worth of the…

A: The time value of money is applied to calculate the future value of the amount invested in the fund.…

Q: Investment opportunity 1. Your parents are interested in getting advice on what is the best outcome…

A:

Q: You have invested $2,500 in an asset that will yield 8% each year for the next 5 years. How much…

A: Money get back after n years = Investment * [ 1 + Yield rate ]n

Q: All computations must be done and shown manually Question 2 You are contemplating investing some…

A: InvestmentRateCompoundingNumber of…

Q: You are scheduled to receive $40,000 in two years. When you receive it, you will invest it for 6…

A: given, pv= $40,000 r=7% n=6

Q: You want to retire in 40 years as a millionaire (i.e., to have $1,000,000). If 6% is the average…

A: In the given question we need to calculate the monthly payment from following details : Future value…

Q: Using the previous table, enter the correct factor for three periods at 5%: Future value x Factor =…

A: Solution We know Present value    = future value * discounting factor 5% is the discounting rate in…

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.