Investment Opportunity Cash Flows in $ 1 2 3 $1,100 $ (1,100) $ (1,300) $ (1,500) $ (500) S 4 1,500 $ $ 350 $ 500 (400) Suppose you are presented with the investment opportunity described in the table above. Assume the applicable annual interest rate is 4.75%. Calculate the NPV of this investment. Round your answer to two decimals (Do not include the $-sign in your answer, enter negative values with a minus sign and not in parentheses) Year Benefits Costs $ $ 0 5 5,000

Investment Opportunity Cash Flows in $ 1 2 3 $1,100 $ (1,100) $ (1,300) $ (1,500) $ (500) S 4 1,500 $ $ 350 $ 500 (400) Suppose you are presented with the investment opportunity described in the table above. Assume the applicable annual interest rate is 4.75%. Calculate the NPV of this investment. Round your answer to two decimals (Do not include the $-sign in your answer, enter negative values with a minus sign and not in parentheses) Year Benefits Costs $ $ 0 5 5,000

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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Solve for the value of X in the accompanying table, so that the cash flow A is equivalent to the cash flow B. Let i 8% per year. Cash flow A Cash flow B Year Cash flow, $ Year Cash flow, S 2. 8,000 2. 3. 3. 4. -2X 8,000 3X Select one: O a. 8381.6 O b. 9009.4 O c.7126.0 O d. 9637.2 O e. 7753.8 4.
Damien offers you a sequence of end-of-year cash flows for an investment as follows: Year 1 2 3 4 4 What is the value of the cash flows if the opportunity cost is 6 percent? (Round to the nearest dollar). Please click on the following link to access a blank worksheet Click to open:: O $8.392 $8.598 Cash Flow $4,000 $3,000 $2,000 $1,000 $8.734 $8.915
Solve for the unknown interest rate in each of the following: (Your answers should be positive values.) Output area: Present value $181 $335 $48,000 $40,353 Input area: Years 3 m H Ln Interest rate Future value CH $317 $1,080 $185,382 $534,618
An investment has the following expected cash flows: Year 2 3 Cash Flows $10,033 $20,003 30,000 The discount rate is 8 percent. The investment's future value at the end of year 3 is $ ___(keep two decimal places)
A real estate investment has the following expected cash flows: Year Cash Flows 1 $13,000 2 12,000 3 24,000 4 25,000 The discount rate is 4 percent. What is the investment’s present value? Round your answer to 2 decimal places; for example 2345.25.
Value UI T IUF WHich PW(1)c PW (1)p? 10. Investments A and B have the net cash flows given. End of year 1 4. $ 75 $ 75 $150 А -$250 -$250 $175 $ 75 $150 $ 75 В $150 Compare the present worth of A with the present worth of B for an in- terest rate of 5%. Which has the higher value? Answer: A If the interest rate is 15%, which has the higher value? Answer: B а. b. On the same axis, graph the present worth of each investment as a func- tion of the interest rate. с.
Calculate the EAR of the following investment, entered as a percentage (Example: if your answer is 0.145, enter 14.5) Year Number Cashflow 0 -11400 1 3500 2 3000 3 3100 4 2800 Your Answer:
You are asked to evaluate an investment project with the following cash flows: Year 1 234. 2 4 Cash Flow $800 1,090 1,350 1,475 a. If the discount rate is 7 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 25 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 7% b. Present value at 17% c. Present value at 25% $ 3,926.98
Pls help answer this without Excel. I got this incorrect. A real estate investment has the following expected cash flows: YEARCASH FLOW0-$108,262.001$11,543.002$29,042.003$51,281.004$41,065.00 The investor wants a 6.00% return on this investment. What is the NPV of this opportunity? Answer format: Currency: Round to: 2 decimal places.
Problem #2: Consider an investment where the cash flows are: - $920.33 at time 1 = 0 (negative since this is your initial investment) S407 at time = 1 in years $222 at time = 2 in years $426 at time = 3 in years (a) Use Excel's "Solver" to find the internal rate of return (IRR) of this investment. Take a screen shot showing Solver open with your entries for the function clearly visible. Paste the screen shot into an application (like Paint), and save it as a (.png) file. Upload your screenshot below. (b) What is the value of IRR found by Solver?
The following cash-flow streams need to be analyzed: END OF YEAR CASH-FLOW STREAM $1 $2 $3 $4 5 W 100 200 200 300 1,$300 X 600 – – – – Y – – – – 11,200 Z $200 – $500 – 0,300 a. Calculate the future (terminal) value of each stream at the end of year 5 with a compound annual interest rate of 10 percent. b. Compute the present value of each stream if the discount rate is 14 percent.
What is the present value of an investment with the following cash flows? Year 1 $14,000 Year 2 $20, 000 Year 3 $30,000 Year 4. $ 43,000 Year 5. $ 57,000 Use a 7% discount rate, and round your answer to the nearest $1. a. $128, 487 b. $107, 328 c. $112, 346 d. $ 153, 272

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