Table 1: NPV and EVA investment decision analysis of agricultural water project (unit: 10 thousand RMB) Time (year) 100000 Initial investment Operation income Operation cost Depreciation Income taxation 80000 45000 80000 80000 80000 80000 45000 45000 45000 20000 3750 45000 20000 20000 20000 20000 3750 3750 3750 3750 NOPAT After-tax cash flow 11250 11250 11250 11250 11250 31250 31250 31250 31250 31250 NPV 18462 10000 Capital cost EVA 10000 10000 10000 10000 1250 1250 1250 1250 1250 MVA 18462

Q: Find the PV of the following Cash Flows: $50; $150; $200 and $100 if the interest rate is 0%

A: The present value of cash flows is the discounted amount at a certain rate of interest or return for…

Q: Find the effective rate of  interest if the nominal rate is 12 % compounded bi - monhtly.

A: Annual Nominal interest rate = 0.12 Number of compounding in a year (n) = 6 (i.e. 12 months / 2)  Bi…

Q: To find the present value (PV) of an ordinary annuity, O a. the interest is compounded and then…

A: Present value (PV) could be a principal monetary concept utilized to survey the current worth of…

Q: Define effective (or equivalent) annual rate (EAR or EFF%)

A: The effective annual interest rate is the real return on reserve funds or savings account or other…

Q: calculate the Net Present Value

A: The net present value examines the present value of an investment's anticipated cash inflows and…

Q: Explain the difference between the present value factor tables—Present Value of $1 and Present Value…

A: Present value:   This is the amount of future value reduced or discounted at a rate of interest…

Q: If there is a deflation rate of 2% and your account is earning a nominal interest rate of 1.75%,…

A: Deflation rate (d) = 2% Nominal interest rate (r) = 1.75%

Q: 2. Let the force of interest be 8(t) = 0.06 when t is between 0 and 10 and 8(t) = 0.06+.01(t-10) for…

A:

Q: Over one year, future value or cash flow (CF), present value (PV), and the rate of interest (i) are…

A: Future value or CF = PV x (1+i)^twherePV = Present valuei = rate of interestt = time = 1 year

Q: The probability distribution of the returns of two assets, A and B, are shown in the table below.…

A: The combined variability of two variables is described by covariance. When there is a positive…

Q: Use the formula PV = FV × (1/(1+i)n) to find the present value of $9,600 received three years from…

A: Present Value refers to a concept that states the discounted value or say value at today's time of…

Q: am. 162.

A: The problem is asking us to find the total value (TV) and future value (FV) of an income stream. The…

Q: A standard "money demand function used by macroeconomists has the form In(m)o +In(GDP) +R Where m is…

A:

Q: Calculate the percentage of total return for $6800

A: You must have the initial investment amount and the final value after the return to compute the…

Q: ic formula for present value, along with the given discount rate, r, and the number of periods, n,…

A: Present value = Future value * (1 + discount rate)-No. of periods

Q: f the interest is compounded monthly then m is equal to?

A: Compound Interest Compound Interest refers to the interest generated on principal as well as on the…

Q: By using a linear interpolation of the compound interest factors, find the present value of the…

A: The time value of money refers to the concept that takes into account the effect of compounding and…

Q: What is the Effective Annual Return (EAR) if the Annual Percentage Rate (APR) is 15% compounded…

A: Effective annual return is the rate of return on the investment after taking the effects of…

Q: What is the interest rate “r” if PV=$1250 and the FV=$2150 in year t=10?

A: Future value = Present value *(1+r)^n

Q: The series of returns of a single investment are presented as follows; Beginning value 100 115.0…

A: Given: Variables in the question: YearBeginning ValueEnd Value1100.0115.02115.0138.03138.0110.4

Q: Compute the interest rate if future value (FV) = $8011, present value (FV) = $2685,  and number of…

A: Time value of money concept says that a dollar amount invested today will have more value in future…

Q: Consider the following cash flow diagram. What is the value of X if the internal rate of return is…

A: Internal Rate of Return (IRR) refers to that rate at which business determine its discount rates and…

Q: 1. Using the example of a savings account, explain the difference between the effective annual rate…

A: Saving account is the type of deposit account in which interest is paid on the amount deposited.…

Q: Consider an investment which pays 1.05 times your original payment (which is not returned) after two…

A: The return on any investment is given by  R = (F - P)/P  * 12/n Where P = value invested F = value…

Q: ompute the interest rate if future value (FV) = $7198, present value (FV) = $2694,  and number of…

A: The future value any amount includes the amount that is being deposited and amount of interest being…

Q: Consider each part below independently. (Ignore income taxes in your calculations.) Use the built-in…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: Determine the present value P that must be invested to have the future value A at simple interest…

A: To calculate the present value we will use the below formula   A = P+(P*r*t) Where A - Future value…

Q: earns an annual interest rate of 12 percent compounded Semi annually. What is the effective annual…

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: Find the nominal rate, which if converted semi-quarterly could be used instead of 12% compounded…

A: Given,  The rate of 12% compounded semiannually.

Q: Using the formula for simple interest and the given values, find I. P= $300; r= 5%; t = 7 years; I=…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: How many internal rate of return IRRs (the maximum) are suggested by Descartes' rule of signs? 7,000…

A: For unconventional cash flows, Descartes' Rule of Signs states that the maximum number of Internal…

Q: Which of the following is not an established method of translation? O a. Forward method O b.…

A: If a business entity operates in other countries, different currencies are used for reporting the…

Q: Merrill Corp. has the following information available about a potential capital investment: Initial…

A: NPV means PV of net benefits which arises from the project during the life of the project. It is…

Q: What nominal rate compounded monthly is equivalent to 9% effective rate?

A: Effective rate = 9% Nominal rate = r Number of compounding per year (m) = 12

Q: ress the future value A(t) of 1,000 in terms of

A: The future value of money includes the amount that is being deposited and amount of interest…

Q: 6. Consider the following cash flow series, Aj=1,500 Az=3,000 A3=4,500 A4=6,000 As=7,500 A6-9,000…

A: A1 = 1500, A2 = 3000, A3 = 4500, A4 = 6000 A5 = 7500, A6 = 9000, A7 = 10500 A8 = 12000, A9 = 13500,…

Q: Consider the following cash flow diagram. What is the value of x if the internal rate of return is…

A: The value of X here will be the annuity payments that will be equal to P at the given internal rate…

Q: Consider the following cash flow profile: Using a gradient series factor, determine the present…

A: Present value is the discounted value of a single cash flow or a series of cash flow. It states that…