1) You have the opportunity to invest $10,000 in one of two investments. The first investment would pay you either $9,500 or $12,500 at the end of one year; the second investment would pay you either $8,500 or $13,500 at the end of one year.Which investment would you choose and why?
2) A venture recorded revenues of $5 million last year and net profit of $750,000. Total assets were $3,000,000 at the end of last year. Calculate its net margin, asset turnover and return on assets.
1) You have the opportunity to invest $10,000 in one of two investments. The first investment...
1) You have the opportunity to invest $10,000 in one of two investments. The first investment would pay you either $9,500 or $12,500 at the end of one year; the second investment would pay you either $8,500 or $13,500 at the end of one year.Which investment would you choose and why? 2) A venture recorded revenues of $5 million last year and net profit of $750,000. Total assets were $3,000,000 at the end of last year. Calculate its net margin,...
Goldman Investments has offered you the following investment opportunity: • $21,000 at the end of each year for the first 5 years. • $7,800 at the end of each year from year 6 through 10. How much would you be willing to pay for this investment if you require a 18% rate of return? a) 61,594.57 b) 90,072.39 c) 78,029.95 d) 69,517.62
M4_A5. Porter Investments needs to develop an investment portfolio from the following list of possible investments COST ($) INVESTMENTS EXPECTED RETURN ($) A 1,700 15,000 17,000 1,850 8,500 1,400 10,000 1,500 E 13,500 1,750 13,000 1,650 9,000 1,500 H 9,500 1,700 The client can invest up to $100,000. The following conditions should be met: (1) If investment C is chosen, then investment D must also be part of the portfolio, (2) at least four investments should be chosen, (3) of...
You have been offered a unique investment opportunity. If you invest $ 15000 today, you will receive $750 one year from now, $2,250 two years from now, and $15,000 ten years from now. a. What is the NPV of the investment opportunity if the interest rate is 6% per year? Should you take the opportunity? b. What is the NPV of the investment opportunity if the interest rate is 2% per year? Should you take the opportunity?
Problem 8-6 You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1,500 two years from now, and $10,000 ten years from now. Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be...
Problem 8-6 You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1,500 two years from now, and $10,000 ten years from now. Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be...
You have been offered a unique investment opportunity. If you invest $ 9,100 today, you will receive $ 455 one year from now, $ 1365 two years from now, and 9100 in ten years. a. What is the NPV of the opportunity if the cost of capital is 6.1 % per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.1 % per year? Should you take it...
You have been offered a unique investment opportunity. If you invest $ 11,00 today, you will receive $ 555 one year from now, $ 1,665 two years from now, and $ 11,100 in ten years. a. What is the NPV of the opportunity if the cost of capital is 6.5 % per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.5 % per year? Should you take it...
Question Two: You have an opportunity to invest in a deal that will make yearly payments forever. These payments will grow at a rate of 5% per year. You will receive your first payment of $2000 one year from today. Due to the risks associated with this investment, you will require a return of 10%. How much are you willing to pay for this deal today? (KN1:3.5 marks)
Question Two: You have an opportunity to invest in a deal that will make yearly payments forever. These payments will grow at a rate of 5% per year. You will receive your first payment of $2000 one year from today. Due to the risks associated with this investment, you will require a return of 10%. How much are you willing to pay for this deal today? (KN1:3.5 marks)