You have an opportunity to invest $50,100 now in return for $59,800 in one year. If your cost of capital is 8.2%, what is the NPV of this investment? The NPV will be $

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…

Q: You have a goal of having $250,000 five years from today. The return on the investment is expected…

A: We need to use present value formula to calculate the amount needed to invest today( PV).Amount…

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Q: Keith Riggins expects an investment of $112,679.40 to return $17,000 annually for several years. If…

A: Present value = 112,679.40Annual cash flows = 17,000Return = 12%/100 = 0.12 in decimals

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: 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: An investment of P100,000 is expected to yield a regular annual net income of P25,000 per year for…

A: Calculation of benefit cost ratio are as follows

Q: If you invest £100 now and expect to receive £133.1 in 2 years time, what is the Internal Rate of…

A: Note: In Option, a) 0 is being used instead of the bracket, and accordingly it is 15% and not…

Q: You invest in a project that is expected to generate fixed annual cashflows for 4 years beginning in…

A: The movement of funds into and out of a financial system or firm over a predetermined length of time…

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: Given the following variables: S = $50, E = $45, T = 1 year, r = 2 %, and P = $5; if the call option…

A: Given, Stock price (S) = $50 Strike price (E) = $45 T = 1 year r = 2% Put price (P) = $5

Q: An investor has to decide how much he will be willing to pay for an investment that generates the…

A: The present value of future cash flows will be helpful in finding out the total investment which is…

Q: Question: A project pays $2000 today, costs $5000 a year from now, and pays $12, 500 in two years.…

A: Here, Cash inflow in year 0 is $2,000 Cash Outflow in Year 1 is $5,000 Cash Inflow in Year 2 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: Your investment will pay you the following cash flow stream: YEAR | CASH FLOW 1 |200 2 10 3 100 4…

A: The time value of money is a concept in finance that takes into account the effect of compounding to…

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 been offered a unique investment opportunity. If you invest $8,800 today, you will receive…

A: Net Present Value is the present value of cash inflows less the initial investment. If NPV is…

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 been offered a unique investment opportunity. If you invest ​$11,600 today, you will…

A: The computation is shown in excel table below: The formula used above is shown below:  Working…

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 income of $4,000 in Period 0 and $0 in Period 1. Four different investment opportunities…

A: Given Information: Market interest 11% Income is $4000

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: 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: Suppose you buy a machine and you have the option of paying the full price, $40,000, now; or $10,000…

A: Here, Option -1 is paying $40,000 now Option -2 is Paying 10,000 each at the each of the next five…

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: A company has a project with initial investment is $40,000. It will generate $15,000 annually for…

A: Financial statements are statements which states the business activities performed by the company .…

Q: If you invest $11,000 today, how much will you have in each of the following scenarios? (Click here…

A: The future value of a present value is the value of that amount after taking into account the time…

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: You have been offered a unique investment opportunity. If you invest $8,300 today, you will receive…

A: Net present value (NPV) is the difference between present value of all cash inflows and initial…

Q: t=1/2 you have $1300

A: Initial investment at t=0: $1000Additional investment at t=1/2: $5000Account balance at t=1/2:…

Q: What will be the better option, receive 100,000 now or receive 250,000 six years from now? The…

A: To find out the better option we need to calculate the present value of 250,000 by using below…

Q: CONSIDERING THAT:   You want to make an initial investment of $100,000, and maintain a constant…

A: Owning a stock, bond, or other financial instrument is considered a portfolio investment when it…

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: One investment plan that you can buy on 1st December 2020 promises to give you certain payment of…

A: The cash flow diagram is the representation of the company's cash flow graphically. The minus sign…

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: 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 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:

Q: A company has a project with initial investment is S40,000. It will generate $15,000 annually for…

A: Initial Investment =$ 40,000 Annual Cash flows = $ 15000 Years = 4 Beta = 2.0 Risk Free return(Rf) =…

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

A: IRR and NPV are two popular methods of capital budgeting analysis and choosing the best project.