The rate of return on an investment of $1500 that doubles in value over a 4-year period, and producen a $300 annualcash flow, is nearest to which value? (a) 15% (b) 20% (c) 25% (d) 30%

Q: Mike Derr Company expects to earn 12% per year on an Investment that will pay $616,000 six years…

A: Answer :Present value=?=?[1/(1+ rate) ^time]Future value = $616,000Rate = 8%Time = 7  yearsPresent…

Q: Grace was given Dogecoin originally purchased for $0.5 by Elon Musk, his grandfather 50 years ago.…

A: According to Time Value of Money, FV=PV×1+RN WHERE, FV=FUTURE VALUEPV=PRESENT VALUER= RATEN=NUMBER…

Q: Suppose that LilyMac Photography expects EBIT to be approximately $210,000 per year for the…

A: Given that Lily Mac photography  has 1000, 10 year ,9% annual coupon bond outstanding.Multiplying…

Q: An investment will return $125 at the end of each month for 5 years and then $250 at the end of each…

A: Value at the end of 5 years of $250 received for next 3 years every month, can be calculated as…

Q: What monthly compounded nominal rate of return would one need to achieve in order to have…

A: Compound = Monthly = 12Monthly Payment = $100Number of Payment = 35 * 12 = 420Future Value of…

Q: An investor receives $1,050 in 6 months in return for an investment of $1,000 now. What is the…

A: Compound = ContinuousFuture Value = fv = $1050Time = t = 6 / 12 = 0.5 YearsPresent Value = pv =…

Q: How much is the sum of the present value of the expected return over those periods

A: Cash Flows (Year 1-10) (CF) =  $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…

Q: over the past 3 years an investment returner( per year)20%,-13%,5%. what is thr annual standard…

A: Given:

Q: What ls the present value (PV) of an Investment that will pay $2,500 In five years if the…

A: The present value (PV) is the current worth of a future sum of money or stream of cash flows given a…

Q: A 6 months (182 day) investment of CAD 15,500,000 yields a return of CAD 100000. What is the rate of…

A: The rate of return must be understood in connection to an investor's investment objectives and…

Q: An investment account offers a 12% annual return. If $50,000 is placed in the account for two years,…

A: Compound Interest is the interest earned on the interests previously earned.It is a method of…

Q: an investment that makes 20% one year and loses 20% the next yea following returns for this…

A:

Q: Consider an investment with an initial cost of $10,000 and uniform annual revenue of $2,500 per year…

A: The Internal Rate of Return (IRR) is a financial measure that gauges investment profitability by…

Q: Investment A will earn 0.5% per month.  Investment B will earn 6% per year.  Which investment will…

A: Investment A compounded monthly and Invested B is compounded annually. Therefore effective interest…

Q: An investment product promises to pay $43,000 at the end of 8 years. If an investor feels this…

A: The future value formula:Future value = Investment ( 1+ r) nGiven,future value = $43000r is the…

Q: An investment has doubled in 8 years. What is the annually compounded rate of return? Select one:…

A: Period = 8  Years

Q: What is the dollar-weighted return on a $100 investment that generates annual returns of $20, $15,…

A: Return is that portion which a person receives over the investment amount during the whole period.…

Q: what annual rate of return is needed to receive $930 in one year on an investment of $ 18,600?

A: Simple interest refers to the method of interest calculation where the principal amount remains…

Q: An investment produced annual rates of return of 5%, 12%, 8% and 11% respectively over the past four…

A: Average returns is the simple mean of returns generated over a period of time. This is a…

Q: (Ignore income taxes in this problem.) If an investment of $14,760 now will yield $18,000 at the end…

A: Introduction: An investment in real estate that will one day be worth more than the purchase price.…

Q: 6. a) What capital should be invested now at 12.69% annually, compounded every two months to have…

A: TVM refers to the concept that considers the effect of money's interest-earning capacity, which…

Q: What is the present value​ (PV) of an investment that pays $80,000 every year for four years if the…

A: In this problem we have to calculate quarterly interest and periods and calculate future value…

Q: n amount of $5000 was invested with an annual interest rate of 5.5% compounded monthly. Answer the…

A: Future value of amount is computed as follows:-FV = A * (1+r)nwhereFV = future value A = amount…

Q: Investment A opportunity involves a payment of $20,000.00 and is expected to produce an income…

A: Investment A  Payment = $20,000  f1(t) = 33000e0.025t  Time = 10 years Investment B Payment =…

Q: What annual rate of return is earned on a $3,300 investment when it grows to $7,100 in nineteen…

A: 4.11%

Q: An investment of $80,000 is expected to generate a net annual income of $25,000 for 5 years. If the…

A: Net present value is net cash inflows used to determine investment decisions. Under this method,…

Q: If a $10,000 investment earns a 4.3 percent annual return, what should its value be after 1 year?…

A: The future value of an investment is the sum total of the original investment and the total return…

Q: Calculate the IRR and NPV for a $1,000,000 investment with a 5% return annually over a 5 year period…

A: The terms "net present value" (NPV) and "net present worth" (NPW) are used to describe a set of…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.