question 18What is the value of an investment that promises to pay $88 per year forever if the appropriate required rate of return is 6.5 percent?O None of the listed choices is correctO $1353.85O $93.72O $82.63O $13.54AMoving to another question will save this response.MacBook Air...F1F2F3F4F5F6F7@#32$&236.7QWERYASDFGV

The cash flows that are started immediately after the investment and go on for an infinite time…

What is the value of an investment that promises to pay $88 per year forever if the appropriate required rate of return is 6.5 percent? None of the listed choices is correct O $1353.85 $93.72 $82.63 $13.54

What is the value of an investment that promises to pay $88 per year forever if the appropriate required rate of return is 6.5 percent? None of the listed choices is correct O $1353.85 $93.72 $82.63 $13.54

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

What is the internal rate of return (IRR) of an investment that requires an initial investment of $14,000 today and pays $19,320 in one year's time? A. 39% B. 37% C. 41% D. 38%
How much would $9,00o ts be received at the end of 50 years be worth today if the rered rate of return is 7.5%? $285.02 $153.89 $223.82 O $242.00 $693.65
need Handwritten Solution.
If you could buy an investment now and four years later sell it for $27,000, what would you be willing to buy it for, assuming a 5% discount rate and no other cash flows? $21,155 $23,080 $22,213 None of the answers are correct
You purchased a house for $785000 cash 5 years ago. You can sell it today for $1050000. What rate of return did you earn on this investment? Round your answer to the nearest tenth of a percent. Group of answer choices a. none of the choices b. 133.8% c. 6.8% d. 33.8%
Need answer no use ai
Five years ago, you invested 8,050.77. If you earned a compound annual rate of return of 3.50%, how much is your investment worth today? Question 4 options: 10,878.34 9,561.79 9,233.54 10,242.32 8,619.74
7. 8. O 9. O 10. 11. 12. 13. 14. 3 O O O An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $300 at the end of Year 5, and $550 at the end of Year 6. If other investments of equal risk earn 10% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent. Presént value: $ Future value: $
If you invest $12,000.00 today, how much will you have in the future under each of the following independent scenarios: 10 years at 9% 8 years at 12% 14 years at 15% 24 years at 10% Present Value (PV) Rate Time (Years) Future Value (FV) A $12,000.00 9% 10 B $12,000.00 12% 8 C $12,000.00 15% 14 D $12,000.00 10% 24 PLEASE NOTE: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). PV Rate Time (Years) FV Factor (from Table) Future Value (FV) A $12,000.00 9% 10 B $12,000.00 12% 8 C $12,000.00 15% 14 D $12,000.00 10% 24 PLEASE NOTE: All FV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67).
If you invest $131,300 in a project which yields an annual return of $25,400, how many years will it take to recover your investment if the annual interest rate is 5.5%? a. 8 O b. 5 О с. 7 d. 6 е. 9
(3) Today you have paid $275 for an investment that pays $100 in one year, $500 in two years,and $X in 4 years. Assuming the market interest rate is 100% and the net present value of theinvestment is zero, what must be true about X?(a) X is greater than $2,500(b) X is greater than or equal to $2,000 but less than $2,500(c) X is greater than or equal to $1,500 but less than $2,000(d) X is greater than $1,200 but less than $1,500(e) X is less than or equal to $1,200
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