You have an opportunity to invest $100,000 now in return for $79,700 in one year and $30,100 in two years. If your cost of capital is 9.4%​, what is the NPV of this​ investment? The NPV will be $_______________ ​(Round to the nearest​ cent.)

Q: ,what is the NPV of this​ investment?

A: Net Present Value: It is a measure of profitability and shows the absolute profit or loss made from…

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Q: ou are considering an investment opportunity that yields $520 one year from today, $900 in two…

A: PV = sum of (Cashflow/(1+r)^1 +.......Cashflow/(1+r)^n)

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A: Step 1:

Q: Your firm has a risk-free investment opportunity with an initial investment of $250,000 today and…

A: Present value = $250,000Future value = $266,000Number of years = 1

Q: What is the most you would be willing to pay for an investment that will pay you $537 in one year,…

A:

Q: You have an opportunity to invest $107,000 now in return for $79,700 in one year and $29,800 in two…

A:

Q: You are deciding between two mutually exclusive investment opportunities. Both require the same…

A: Given:   Cost of capital 6.60%     Growth rate 2.30%   Year Particulars Investment A…

Q: The initial cost of an investment is $65,000 and the discount rate (cost of capital) is 12%. The…

A: Initial Cost = i = $65,000Discount Rate = r = 12%Cash Flow per Year = c = $16,000Time = t = 8 Years

Q: You have been offered a unique investment opportunity. If you invest, $10400 ?today, you will…

A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…

Q: You currently have $8,700 to invest. You can invest the full amount now for a period of 9 years at…

A: Final Value after 9 years = $15,000Initial Value = $8,700Number of years (n) = 9

Q: Invest $12,000 today and $10,000 in four years. Receive $15,000 in six years and $20,000 in eleven…

A: The difference between the current value of cash inflows and outflow of cash over a period of time…

Q: If you invest $4,874 in a long-term venture, you will receive $1,035 per year forever. Assuming your…

A: Formula to calculate the capitalized worth of investment is:CW = A/iwhere CW is the capitalized…

Q: You are deciding between two mutually exclusive investment opportunities. Both require the same…

A: Given Initial investment is $10.3 million Cash inflows of A is $2.17 million Cash inflows of B is…

Q: You have an opportunity to invest $50,400 now in return for $60,100 in one year. If your cost of…

A: Net Present value equal to present value of cash flow minus initial investment

Q: You have an opportunity to invest $102,000 now in return for $79,100 in one year and $30,200 in two…

A: The objective of this question is to calculate the Net Present Value (NPV) of an investment…

Q: You have an opportunity to invest $100,000 now in return for $79,600 in one year and $30,300 in two…

A: Given: Year Particulars Amount 0 Initial investment -$100,000 1 Cash inflows $79,600 2 Cash…

Q: The initial cost of an investment is $60,000 and the discount rate (cost of capital) is 8%. The…

A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…

Q: You have an opportunity to invest $100,000 now in return for $80,000 in one year and $30,000 in two…

A: NPV : It is defined as the sum of the present values of all future cash inflows  less the sum of the…

Q: You have an opportunity to invest $49,200 now in return for $60,900 in one year. If your cost of…

A: Net Present Value(NPV) is one of the modern techniques of capital budgeting which considers the time…

Q: You have an opportunity to invest $50,100 now in return for $59,800 in one year. If your cost of…

A: Amount Invested now is $50,100 Amount returned in one year is $59,800 Cost of capital is 8.2% To…

Q: Suppose you have an investment offer that guarantees an average investment gain of $1,000 per year.…

A: The average rate of change describes the rate at which one quantity changes in relation to another.…

Q: 6,986 today and it will generate $9,412 in a year. You would have extra idle fund of $2,935 after…

A: Net present value is the difference between the present value of cash minus the initial investment…

Q: Should you take the $1,600,000 now, or wait to get the full $2,000,000 in 10 years? Why or why not?…

A: Future value of money is the amount of interest accumulated over the period of time of deposit and…

Q: What is the relationship between present value and future value?

A: Future Value : FV is that value which will be received in near future. Present Value : PV is that…

Q: If PV=$100, i=2%, n=5 years, and the investment compounds annually, what is the equation for Future…

A: Given Information: Present Value (PV) : $ 100 Rate (i) : 2 % Time Period (n) : 5 years

Q: What is the profitability index of a project that costs $87 and returns $42 annually for 8 years if…

A: Introduction Profitability Index As the word states, PI(Profitability index measures the ratio…

Q: comma 900 in one year. If your cost of capital is 7.6 %, what is the NPV of this investment?

A: The net present value calculation aids in determining whether an investment will yield a higher…

Q: If you insulate your office for $16000 you will save 1600 a year in heating exp. these savings will…

A: The provided information are: Initial Investment = $16000 Saving = $1600

Q: ou are deciding between two mutually exclusive investment opportunities. Both require the same…

A: IRR is the discount rate that causes NPV = 0. NPV is the net of the present value of cash outflows…

Q: You are deciding between two mutually exclusive investment opportunities. Both require the same…

A: ParticularsInvestment AInvestment BInitial investment-$10,150,000.00-$10,150,000.00Annual cash…

Q: Now, drawing on your understanding of how to calculate present value of future  investment,…

A: interest rate = 12% cumulative present value factor for 10 years = 5.650 future value of investment…

Q: You have been offered a unique investment opportunity. If you invest $10,400 today, you will receive…

A: NPV = Present value of future cash inflows - Initial investment   Calculation of present value of…

Q: You have been offered an investment opportunity that pays $600 every quarter for nine years and…

A: Current value is the present value of the future payments at a given rate of return. Given:…

Q: You have an investment opportunity that promises to pay you $16,000 in four years. Suppose the…

A: In the context of the time value of money (TVM), interest rates play a critical role. The time value…

Q: You have an opportunity to invest $ 108 000 now in return for $ 79500 in one year and $ 30 comma 300…

A: The objective of this question is to calculate the Net Present Value (NPV) of an investment…

Q: You have an opportunity to invest $106,000 now in return for $79,300 in one year and $29,100 in…

A: Data given: Initial Investment ($) = 106,000 Cash flow(Year 1) = $ 79300 Cash flow (Year 2) = $…

Q: If you invest $5,000 today, you will receive $1,000 in a year, $1,500 each in year 2 and year 3, and…

A: Calculate the net present value as follows: