You just started working as a fresh graduate and you have ghc10,000 to invest to enable you start your own business in fifteen years. Evaluate five factors you would consider in selecting among investment alternatives before investing your money, using relevant scenarios?
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Q: is this a good investment for you?
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A: NPV is the net current worth of cash flows that are expected to happen in the future.
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Q: least 25 years. He has a job with saving of £800 per month. He comes to you as his financial advisor…
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Q: Assume the total cost of a college education will be $365.000 when your child enters college in 18…
A: given, future value = $356,000 present value = $59,000 n = 18 years
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A: Given:
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A: Offer amount after 4 years = $ 3000 Amount today = $ 2000 Interest rate = 10%
Q: You are the owner of a graphic design firm that has a number of high-end clients. Your business…
A: NPV is the net current worth of cash flows that are expected to happen in the future.
Q: Assume the total cost of a college education will be $200,000 when your child enters college in 15…
A: future value formula: future value=present value×1+rn where, r=rate n=number of years
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A: IRR is the rate at which NPV is zero
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A: 7a) Future value needed (F) = $1000000 Years to accumulate (n) = 30 r = 12% per annum Let the one…
You just started working as a fresh graduate and you have ghc10,000 to invest to enable you
start your own business in fifteen years. Evaluate five factors you would consider in
selecting among investment alternatives before investing your money, using relevant
scenarios?
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Solved in 2 steps
- you are planning to start a business with an initial capital of P100,000. you decided to put up a fund with deposits made at the end of each month. if you want to gain the initial capital after 4 years, how much monthly deposit must be made? what should be the interest rate in order to achieve the possible amount needed? how are you going to invest your money that in short period of time so that you can start your business smoothly?You have started an investment club with your friend. You identified an account which you think will pay 8% per year. You are going to invest $1200 per year. Your friend is going to invest $100 per month. You plan to invest for 4 years. All else equal, which of the following is true. Select one: a. Your investment will have the higher future value. b. Both investments will have the same future value c. Your friend’s investment will have the higher future value.You wish to start a business and will need a total of $50,000 to get started. You have $20,000 currently saved and would like to start the business in 5 years times. You believe you can earn 12% on invested funds. How much do you need to add to your investment account at the end of every year in order to achieve your goal?
- You have an investment opportunity that promises to pay you $18,000 in four years. You could earn a 5% annual return investing elsewhere. What is the maximum amount you would be willing to invest in this opportunity? Note: Use tables, Excel, or a financial calculator. Round your final answer to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)Your financial advisor from Bluerock recommends you to invest in one of the plan. You want to compare and verify which of the following is the best investment option. Investment Plan A: Deposit $125,000 at the beginning and obtain $175,318.97 after 5 years.Investment Plan B: Deposit $243,000 at the beginning and obtain $319,771.42 after 7 years.Investment Plan C: Deposit $314,000 at the beginning and obtain $530,496.39 after 9 years. 1. Compute interest rate for all 3 plans. Which investment plan provides you the highest rate? 2. Your advisor updated the investment plan information yesterday. While the interest rate did not change for all 3 plans, future values of each investment are 210382.76, 415702.85, 742694.95, respectively. What would be the investment period for each plan? 3. Your advisor thinks it would be a good investment if you make an investment portfolio using all 3 investment plans suggested. He recommends investing in all 3 plans at year 0 and reinvest the money to…SOLVE the following:i. Suppose that your five-year old daughter has just announced her desire toattend college. After some research, you determined that you will need aboutRM 100,000 on her 18th birthday to pay for four years of college. If you canearn 8% annually on your investments, how much do you need to invest todayto achieve your goal?ii. Suppose you have an extra RM100 today that you wish to invest in for oneyear. If you can earn 10% per annum on your investment, how much will youhave in one year?
- If an investor invests her money in a project with a 10% annual return. What is her nominal rate of return after two years. What is her effective rate of return after two years.1) Do the calculations manually then check them using an online financial calculator. You may also use financial software. 2) In your deliverable, you need to describe the tool you usedMitchell Investments has offered you the following investment opportunity: $8,000 at the end of each year for the first 3 years, plus $7,000 at the end of each year from years 4 through 6, plus $3,000 at the end of each year from years 7 through 19. Use Table II and Table IV or a financial calculator to answer the questions. Round your answers to the nearest dollar. How much would you be willing to pay for this investment if you required a 12 percent rate of return?$ If the payments were received at the beginning of each year, what would you be willing to pay for this investment?$After completing your Bachelor of Business (Accounting) degree, suppose you secure a permanent position as an accountant. You drafted a financial plan to retire in 30 years from now. So, you are thinking about creating a fund that will allow you to receive $40,000 at the end of each year for 25 years after your retirement. The interest rates are expected to be 2.25% per annum during the 30year pre- retirement period and 1.75% during the retirement period. Required: a) To provide the 25- year, $40,000 a year annuity, calculate how much should be in the fund account when you retire in 30 years. b) How much will you need today as a single amount to provide the fund calculated in part (a) if you earn 2.35% per year during the 30 years preceding your retirement?c) What effect would a change (increase/decrease) in the interest rates, both during and prior to retirement, have on the values calculated in parts (a) and (b)? Explain why. d) (Using different interest rates) Assume that the…
- Set up a system of equations and then solve using inverse matrics. An investor has found two investment that he wants to invest in. The first one pays 11% per year and a more risky investment pays 19% per year. He has $42,000 to invest and would like an annual income of $7,180.00 per year from his investments. The amount invested at 11% is $ The amount invested at 19% is $Your business finance course has motivated you to begin investing for retirement in your company's 401K plan. Your first $370 monthly investment will be made one month from today and you plan to retire 43 years from today. How much more will you have to invest each month, if you wait for 15 years before starting to invest to end up with the same amount of money at retirement? Assume a rate of return of 0.60 percent per month for your investments. Group of answer choices $1,196.80 $902.79 $826.81 $527.88 $611.34You are offered an investment that will pay you $2000 in one year, $4000 the next year, $6000 the next year, and $8000 at the end of the next year. You can earn 12 percent on very similar investments. What is the most you should pay for this one? How would this be entered In excel?