Project executives from your organization is considering the selection of a project for their portfolio. The corporate CFOinforms that the project will produce a one-time benefit of $900,000 three years from now. The interest rate at the bank is11% per year. How much would you need to invest in the bank now to obtain the same benefit?A) $676,170Bс$ 900,000$ 1,197,900D) $658,080

we need to find out the amount that should be invested.

Answered: roject executives from your…

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

See similar textbooks

Similar questions

A bank offers a CD that pays a simple interest rate of 5%. How much must you put in this CD now in order to have $5600 to replace all the windows in your house in 8 years? $4000 $1600 $3200 $160
You are considering making a movie. The movie is expected to cost $10.7 million upfront and take a year to make. After that, it is expected to make $4.4 million in the first year it is released (end of year 2) and $1.7 million for the following 4 years (end of years 3 through 6). What is the payback period of this investment? If you require a payback period of 2 years, will you make the movie? Does the movie have positive NPV if the cost of capital is 10.3%? C... The payback period is 5.70588 years. (Round up to the nearest integer.) Based on the payback period requirement, would you make this movie? No If the cost of capital is 10.3%, the NPV is $ million. (Round to three decimal places.) (Select from the drop-down menu.) ▸
A new investment opportunity for you is an annuity that pays $850 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
A gold mine is expected to yield an annual income of $90000 for the next 24 years, after which it will be sold for $6300. An investor wants an annual return on his investment of 12%. If he can establish a sinking fund earning an annual interest rate of 6%, how much should he pay for the mine? Answer = $
Consider the pair of savings plans below. Compare the balances in each plan after 13 years. Which person deposited more money in the plan? Which of the two investment strategies is better? Assume that the compounding and payment periods are the same for each pair. George deposits $60 per month in an account with an APR of 5%, while Harvey deposits $190 per quarter in an account with an APR of 5.5%. The balance in George's account is how much money?(Round to nearest tenth if needed) The balance in Harvey's account is how much money?(Round to nearest tenth if needed) How much did George deposit? How much did Harvey deposit?
Leo Lucky, owner of a Pizza Hut franchise, bought a delivery truck for $30,000. The truck has an estimated life of 5 years with a residual value of $10,000. Leo wants to know which depreciation method will be the best for his truck. He asks you to prepare a depreciation schedule using the declining-balance method at twice the straight-line rate.
Your credit card has a balance of $4200 and an annual interest rate of 13%. You decide to pay off the balance over four years. If there are no further purchases charged to the card, you must pay $112.70 each month, and you will pay a total interest of $1209.60. Assume you decide to pay off the balance over one year rather than four. How much more must you pay each month and how much less will you pay in total interest? A. You will pay $__ more each month. B. You will pay $__ less each month.

Recommended textbooks for you

Algebra and Trigonometry (6th Edition)

Algebra

ISBN:

9780134463216

Author:

Robert F. Blitzer

Publisher:

PEARSON

Contemporary Abstract Algebra

Algebra

ISBN:

9781305657960

Author:

Joseph Gallian

Publisher:

Cengage Learning

Linear Algebra: A Modern Introduction

Algebra

ISBN:

9781285463247

Author:

David Poole

Publisher:

Cengage Learning

Algebra and Trigonometry (6th Edition)

Algebra

ISBN:

9780134463216

Author:

Robert F. Blitzer

Publisher:

PEARSON

Contemporary Abstract Algebra

Algebra

ISBN:

9781305657960

Author:

Joseph Gallian

Publisher:

Cengage Learning

Linear Algebra: A Modern Introduction

Algebra

ISBN:

9781285463247

Author:

David Poole

Publisher:

Cengage Learning

Algebra And Trigonometry (11th Edition)

Algebra

ISBN:

9780135163078

Author:

Michael Sullivan

Publisher:

PEARSON

Introduction to Linear Algebra, Fifth Edition

Algebra

ISBN:

9780980232776

Author:

Gilbert Strang

Publisher:

Wellesley-Cambridge Press

College Algebra (Collegiate Math)

Algebra

ISBN:

9780077836344

Author:

Julie Miller, Donna Gerken

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS