Terri Allessandro has an opportunity to make any of the following investments: . The purchase price, the lump-sum future value, and the year of receipt are given below for each investment. Terri can earn a rate of return of 6% on investments similar to those currently under consideration. Evaluate each investment to determine whether it is satisfactory, and make an investment recommendation to Terri. The present value, PV Data table $20,032 IIIT Investment Purchase Price Future Value Year of Receipt A $28,000 5 B с D $4,173 $20,000 11 46 $402 $3,266 $1,000 $7,000 21 (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)
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- Terri Allessandro has an opportunity to make any of the following investments: E. The purchase price, the lump-sum future value, and the year of receipt are given below for each investment. Terri can earn a rate of return of 13% on investments similar to those currently under consideration. Evaluate each investment to determine whether it is satisfactory, and make an investment recommendation to Terri. The present value, PV, at 13% required return of the income from Investment A is S . (Round to the nearest cent.) - X Data table Purchase Price Future Value Year of Receipt Investment $8.674 $21,000 $2.000 15 $429 $2.282 $57 11 $10,000 54 $14,000 (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet) Clear all Check answer Heln me BCDSCalculate 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:Given below is the information on various sets of investments. Asset Holding Period Return (HPR) Holding Period (%) Unit Trust- ABP 28 3.5 years RK Share 17 1 year Real Estate 11 9 months MAR Bonds 19 2.8 years MNF Share -2 3 months Calculate the annualised holding period returns for each asset. Based on your calculation of annualised holding period returns in (i) above, which asset would be the best choice for investment? Why?
- You must choose between two investments, G and W. The profitability index (PI), net present value (NPV) and internal rate of return (IRR) of the two investments are as follows: Criteria Investment G Investment W NPV –12 000 40 000 PI 0,985 1,053 IRR 20% 24% Which investment(s) should you choose, considering all the above criteria, if the cost of capital is equal to 21% per yearTom Alexander has an opportunity to purchase any of the investments shown in the following table, price single yr cash flow yr of receipt a$7,500 $14,615 6b$225 $1,514 21c$1,425 $4,472 11d$375 $16,972 41 . The purchase price, the amount of the single cash inflow, and its year of receipt are given for each investment. Which purchase recommendations would you make, assuming that Tom can earn 10% on his investments? The present value of Investment A is $ (Round to the nearest cent.) The present value of Investment B is $ (Round to the nearest cent.) The present value of Investment C is $ (Round to the nearest cent.) The present value of Investment D is $ (Round to the nearest cent.) Which…Returns. What are the returns on the following investments, E ? ..... Original Cost of Investment Selling Price of Investment Distributions Investment Received Percent Return CD $800 $810 $0 % (Round to two decimal places.)
- You are evaluating five different investments, all of which involve an upfront outlay of cash. Each investment will provide a single cash payment back to you in the future. Details of each investment appears here: Calculate the IRR of each investment. State your answer to the nearest basis point (i.e., the nearest 1/100th of 1%, such as 3.76%). The yield for investment A is The yield for investment B is The yield for investment C is The yield for investment D is The yield for investment E is %. (Round to two decimal places.) %. (Round to two decimal places.) %. (Round to two decimal places.) %. (Round to two decimal places.) %. (Round to two decimal places.) C Data table Investment A B с D E Initial Investment $1,600 $10,000 $600 $3,400 $5,200 Future Value Print $3,120 $15,775 $2,923 $4,526 $8,789 End of Year 10 11 16 Done 3 (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) 12 D XEvaluate each of the following $10,000 investment alternatives and recommend the best alternative for investing any principal regardless of the actual amount. Assume in all cases that the principal and simple interest earned in prior terms are placed into subsequent investments.Tom Alexander has an opportunity to purchase any of the investments shown in the following table Investment Price Single cash inflow Year of Receipt A $18,000 $30,000 5 B $600 $3,000 20 C $3,500 $10,000 10 D $1,000 $15,000 40 The purchase price, the amount of the single cash inflow, and its year of receipt are given for each investment. Which purchase recommendations would you make, assuming that Tom can earn 10% on his investments? The present value of Investment A is $ The present value of Investment B is $ The present value of Investment C is $ The present value of Investment D is $ Which purchase recommendations would you make, assuming that Tom can earn 10% on his investments? A.Investment B B.Investments A and C C.Investments B and C D.Investment D
- You have been given the expected return data shown in the first table on three assets—F, G, and H—over the period 2018-2021 Year Asset F Asset G Asset H 2019 5 12 12 2020 10 9 7 2021 13 21 4 2022 6.5 6 10.5 Using these assets, you have isolated the three investment alternatives shown in the following table. Alternative Investment 1 100% of asset G 2 40% of asset F and 60% of asset G 3 50% of asset F and 50% of asset H Calculate the expected return over the 4-year period for each of the three alternative Calculate the standard deviation of returns over the 4-year period for each of the three alternatives. Use your findings in parts a and b to calculate the coefficient of variation for each of the three alternatives. On the basis of your findings, which of the three investment alternatives do you recommend? Why?Evaluate the following capital investments accordingto net present value. Each alternative requires an initia l investmentof $20,000. Assume a I 0% cost of capital. Which is the preferredinvestment?Joliet Company is considering two alternative investments. The company requires an 18% return from its investments. Compute the IRR for both Projects and recommend one of them. For further instructions on internal rate of return in Excel, see Appendix C.