Question 3 1 pts Calculate the Present Value Ratio for the following Investment C, assuming an...
Calculate the Present Value Ratio for the following Investment C, assuming an annual discount rate of 12%. C=10,000 C=8,000 C=6,000 I=7,500 I=7,500 ... I=7,500 L=8,000 0 1 2 3 4 ... 10 C: Cost, I:Income, L: Salvage value
1.) Calculate the Benefit-Cost Ratio for the following Investment B, assuming an annual discount rate of 14%. C=10,000 C=8,000 C=6,000 I=7,500 I=7,500 ... I=7,500 L=10,000 0 1 2 3 4 ... 10 C: Cost, I:Income, L: Salvage value 2.) Calculate the Present Value Ratio for the following Investment C, assuming an annual discount rate of 12%. C=10,000 C=8,000 C=6,000 I=7,500 I=7,500 ... I=7,500 L=8,000 0 1 2 3 4 ... 10 C: Cost, I:Income, L: Salvage value
Part 1 1. Calculate the NPV for the following Investment A, assuming an annual discount rate of 10%. C=10,000 C=8,000 C=6,000 I=7,500 I=7,500 ... I=7,500 L=10,000 0 1 2 3 4 ... 10 C: Cost, I:Income, L: Salvage value Part 2 2. Calculate the Benefit-Cost Ratio for the following Investment B, assuming an annual discount rate of 14%. C=10,000 C=8,000 C=6,000 I=7,500 I=7,500 ... I=7,500 L=10,000 0 1 2 3 4 ... 10 C: Cost, I:Income, L: Salvage value
Round final answer to 2 decimal places 103 minutes. Question 1 Calculate the NPV for the following investment A, assuming an annual discount rate of 10%. C-10000 C-8,000 C-6.000 -7500.500-7.500 10 10,000 3 C: Cost, Lincome, L: Salvage value 1335614 To determine the NPV, you will need to calculate: NPV -10,000-8,000.(P/F10%, 1)-6,000.(P/F10 %2) + 7,500.(P/Fiosz).(PA10%8) + 10,000. (PF10% to)
Calculate the NPV for the following Investment A, assuming an annual discount rate of 10%. C=10,000 C=8,000 C=6,000 I=7,500 I=7,500 ... I=7,500 L=10,000 0 1 2 3 4 ... 10 C: Cost, I:Income, L: Salvage value
Question 5 1 pts You are analyzing the value of an investment by calculating the present value of its expected cash flows. Which of the following would cause the investment to look worse, i.e. have a lower PV? The riskiness of the project's cash flows decreases. The cost of the investment decreases. The discount rate falls. The discount rate rises,
1.) An investment in manufacturing equipment yields the following cash flows for 8 years. At the end of the 8th year the equipment can be sold for $15,000. Assuming an interest rate of 14% (compounded annually), how much would you be willing to invest in this manufacturing equipment? C=? I=2000 I=2000 I=2000 I=2000 I=1000 I=1000 I=1000 I=1000 L=$15,000 0 1 2 3 4 5 6 7 8 C: Cost, I: Income, L: Salvage Value 2.) Suppose that the nominal annual...
1. Calculate the present value of $50,000 to be received in 15 years assuming an annual interest rate of 6%. 2. Calculate the present value of $1,000,000 to be received in 20 years assuming an annual interest rate of 5%, compounded monthly. 3. Calculate the future value of $1,000 invested for 5 years assuming an annual interest rate of 20%. 4. Calculate the future value of $12,000 invested for 18 years assuming an annual interest rate of 12%, compounded monthly....
PART 1: Assume $50,000 is paid for an asset in present time that yields annual cash flow of $6,000 dollars per year in Years 1 through 10, as shown in the table below. At the end of Year 10 the salvage value of the asset is $40,000. Calculate the rate of return on this investment. (In other words, find the value of the interest rate i that makes the Net Present Value of the investment equal to zero - this...
Please solve this using an Excel Spreadsheet (that's what it asks for in the question) 1. You are asked to choose the more profitable alternative from the two options shown in the table below. Option A requires an initial investment of $100,000 while Option B requires an initial investment of $200,000. a. Please use a spreadsheet to show the present value of the cost annual cost and benefit flows for each option. - 10 pts b. Use the Net Present...