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: An investment of $60,000 resulted in uniform income of $10,000 per year for 10 years. The rate of…

A: Rate of return on the investment is rate of return that will be earned by the investor on the…

Q: Adams Company can aquire a $750,000 machine now that willbenefit the firm over the next 8 years.…

A: Net Present value Net present value method is the method which is used to compare the initial cash…

Q: A one-year investment yields a return of 15%. The cash returned from the investment, including…

A: We have the following information: A one-year investment yields a return of 15% The cash returned…

Q: You have looked at the current financial statements for J&R Homes, Company. The company has an EBIT…

A: Answer: Price per share = Total Value of firm/ No of shares

Q: Find the time required for an investment of 5000 dollars to grow to 6700 dollars at an interest rate…

A: we have convert annual rate to quarter period interest and period into quarterly period also.

Q: Which alternative in the table below should be selected when the MARR = 5% per year? The life of…

A: Given information : Year (A-DN) (B-A) (C-B) (D-C) 0  $ (800.00)  $ (500.00)  $ (1,200.00)  $…

Q: If an investment project costs a firm £200 and yields a stream of profits of £100 per year for the…

A: Internal rate of return(IRR) is one of the techniques of capital budgeting that take into…

Q: An investment is expected to generate cash flows of $20,000 next year (at time t=1), and $10,000 in…

A: Given: Year Particulars Amount 1 Cash inflows $20,000 2 Cash inflows $10,000   Growth rate…

Q: You want to make an investment of $2,000,000 in new equipment which is expected to generate $230,000…

A: Given: Investment = $2,000,000 Revenue = $230,000

Q: a. Calculate the following Periodic Total Returns on a 5-year investment. To your calculations,…

A: a. Calculate the total return on invest as follows: Selling Cost = 5% Total Return = NCF + Increase…

Q: How much was initially invested if the value of the investment is at P200,000 after 3 and a half…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: The initial cost of an investment is $65,000 and thecost of capital is 10%. The return is $16,000…

A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…

Q: If Quail Company invests $50,000 today, it can expect to receive $10,000 at the end of each year for…

A: Introduction: The net present value of a capital asset is a metric that measures whether or not to…

Q: Management of a firm with a cost of capital of 12 percent is considering a $100,000 investment with…

A: given, r = 12% Initial investment = $100,000 Annual cashflow = $44,524 n = 3 years

Q: Illustration: An investment opportunity costs $10,000 and returns $5,000, $4,000, and $3,000,…

A:

Q: Net returns from an investment are estimated to be $13,000 per year for 12 years. The investment…

A: Capital investment is a long-term capital expenditure that requires huge capital for a long-term…

Q: With a margin of 120 million of a base year that grows at 10%, some commissions collected of 205…

A: Calculate the margin in the following year (Margin T+1) by multiplying the margin in the base year…

Q: What is the simple annual rate of return on a $10,000, 3-year investment with cash inflows of $2,000…

A: The simple annual rate of return is calculated by dividing the annual cash flow by the initial…

Q: 7. Find the IRR of an investment of 50,000 ETB, whose receipts in the next four years are ETB…

A: IRR is the rate at which the present value of cash flows equals the initial investment. A project…

Q: A financial investment equal to BRL 100,000.00 allows a withdrawal of BRL 20,000.00 in the first…

A: Investment  BRL  1,00,000.00 Withdrawal  BRL     20,000.00 Annual growth 2% Time Period 10…

Q: What annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years?…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: A cutting-edge product had the following net cash flow series during its first 5-year period on the…

A: Modified Internal Rate of Return (MIRR) is the financial measure which is used in capital budgeting…

Q: An investment of $8,000 is made at time 0 with returns of $3,500 at the end of each of years 1–4,…

A: present worth formula: pw=-initial investment+present value of future cashflow

Q: The in itial cost of an investment is $65,000 and thecost of capital is I 0%. The return is $ 16,000…

A: Net present value is the difference between the present value of cash flow and initial investment.

Q: Fancy Cat Products has a project that will cost $247,500 today and will generate monthly cash flows…

A: Given that;Present value is $247500Monthly payment is $5435Number of periods is 60 months

Q: What uniform annual series of cash flows over a 12-year period is equivalent to an investment of…

A: PVA=PMT 1+rn-1/r (1+r)n   Present value annuityFVA=PMT1+rn-1/r    Future value…

Q: Determine the expected net operating income from sales of microchip components. The probabilities…

A: Net operating income (NOI) is defined as the income, which is calculated by analyzing the…

Q: A company’s most recent free cash flow was $270. The companyexpects to have a FCF in 1 year of $300,…

A: Value of the firm is calculated by using the following formula: OFCF/k - g Where OFCF is the…

Q: A company expects to have FCF of $300 in 1 year, which is expectedto grow at a constant rate of 3%…

A: The current worth of the free cash flows of a company is term as the value of operations of a…

Q: An investment of $23,500 in new equipment will generate income of $6,500 per year for 10 years. What…

A: PV of cash outflow=$23,500 Income per year=$6,500 Duration(n)=10 years   As per the equation of IRR,…

Q: The capital investment in the system is $72,000, and the projected annual savings are tabled below.…

A: Future Worth: Using an expected rate of growth, future value (FV) is defined as the worth of a…

Q: a. Calculate the following Periodic Total Returns on a 5-year investment. To your calculations,…

A: You have posted multiple questions. We will solve the first question for you. The return on…

Q: The manager of a production system expects to spend $100,000 the first year with amounts increasing…

A: Expenditure in first year = 100,000 Increase in expenditure per year = 10,000   Income in first year…

Q: (a) Calculate the NPV of this investment.  (b) Calculate the sensitivity of your calculation to the…

A: Given: Initial investment = 80000 selling cost (A) 16.5 variable cost(B) 12 contribution per…

Q: How much was initially invested if the value of the investment is at P200,000O after 3 and a half…

A: Present value is referred to as the present worth of the investment amount which is discounted at an…

Q: The present amount needed to generate an annual income of $50,000 for 20 years if the expected rate…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: A $90,000 investment is made. Over a 5-year period, a return of $30,000 occurs at the end of the…

A: Net Present Value is the difference between the present value of cash inflows and cash outflows.

Q: An investment project involves an investment now of 100. In one year, a positive cash flow of 40 is…

A: Capital budgeting is the process by which a corporation examines potential large projects or…

Q: The rate of return on an investment of $1500 that doubles in value over a 4-year period, and…

A: We will use the NPER formula in excel =NPER(rate, pmt,pv,-fv,type) where NPER is the number of…

Q: What is the IRR of an investment of 2 million with a yearly savings of 500,000 for 10 years and a…

A: Internal Rate of Return (IRR) is that discounting rate at which Net Present Value of the project is…

Q: An investment of $50,000 in R&D results in additional revenue of $28,720 after 5 years and another…

A: Rate of return will IRR of the investment

Q: An investment of $80,000 yields a net income of $10,000 per year. How many years does it toke to…

A: Data given: Investment = $80,000 Net income = $10,000 per year Nominal interest rate = 6.5%…

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.