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- You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $25,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.05 annually. If you use a discount rate of 0.08 for investment products, what is the present value of this growing perpetuity? Round to two decimal places.Peaceful Cruises wants to build a new cruise ship that has an initial investment of $200 million. It is estimated to provide an annual cash flow over the next 15 years of $24 million per year. The discount rate is 7%. What is the discounted payback period? Enter your answer rounded to two decimal placesCarla Vista Company is considering investing in an annuity contract that will return $34,500 annually at the end of each year for 15 years. Click here to view the factor table. What amount should Carla Vista Company pay for this investment if it earns an 8% return? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, e.g. 25.25.) Carla Vista Company should pay $
- An investment offers to pay you $10,000 a year for four years. If it costs $27,980, what will be your rate of return on the investment? Use Appendix D to answer the question. Round your answer to the nearest whole number.An investment offers to pay you $8,000 a year for five years. If it costs $28,840, what will be your rate of return on the investment? Use Appendix D to answer the question. Round your answer to the nearest whole number. %You plan to make a lump-sum deposit of $5000 now into an investment account that pays 6% per year, and you plan to withdraw an equal end-of-year amount of $1000 for 5 years, starting next year. At the end of the sixth year, you plan to close your account by withdrawing the re- maining money. Define the engineering economy symbols involved.
- ABC Service can purchase a new assembler for 15,052 dollars that will provide an annual net cash flow of 6,000 dollars per year for five years. Calculate the NPV for the assembler if the required rate of return is 12%. (Round your answer to the nearest dollar.)You are trying to value the following investment opportunity: The investment will cost you $22,619 today. In exchange for your investment you will receive monthly cash payments of $4,979 for 8 months. The first payment will occur at the end of the first month. The applicable effective annual interest rate for this investment opportunity is 8%. Calculate the NPV of this investment opportunity. Round to two decimals (do not include the $-sign in your answer).An investment promises to pay you $40, 000 per year starting five years from today and continuing until the end of year 12. How much would you pay for that investment today assuming a discount rate of 10% ?
- Indigo Company is considering investing in an annuity contract that will return $53,000 annually at the end of each year for 19 years. What amount will Indigo Company pay for this investment if the company earns an 8% return? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, e.g. 52.75.) Click here to view the factor table. Indigo Company pay for investmentEmerald Enterprises is developing a new product at the cost of $ 50,000. The new product is expected to increase the cash flow for the next five years as follows: $ 10000, $ 15000, $ 15000, $ 20000 and $ 20000. If the discounting rate is 12%, what is the discounted payback period? (Note: Roundup the fractional values; that is if the payback period is 6.23 years, enter 7 years as payback period) 4 years 5 years 3 years 2 yearsAn investor is considering two investment projects. Project A requires an initial payment of £13,000. In return, the investor will receive a payment of £18,600 after one year. Project B requires an initial payment of £10,900. In return, the investor will receive a payment of £1,300 at the end of every month for one year. Calculate the cross-over rate of the projects % Enter a percentage correct to 1 decimal place. What is the payback period of each project? Project A: months Project B: months