A $75,000 investment is made. Over a 5-year period, a return of $30,000 occurs at the...
A $75,000 investment is made. Over a 5-year period, a return of $30,000 occurs at the end of the first year. Each successive year yields a return that is 13 % less than the previous year’s return. If money is worth 5%, what is the equivalent present worth for the investment?
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A $75,000 investment is made. Over a 5-year period, a return of
$30,000 occurs at the...
A $110,000 investment is made. Over a 5-year period, a return of $30,000 occurs at the end of the first year.
A $110,000 investment is made. Over a 5-year period, a return of $30,000 occurs at the end of the first year. Each successive year yields a return that is 9% less than the previous year's return. If money is worth 5, what is the equivalent present worth for the investment? _______
Q.30) A $100,000 investment is make over a 10-years period. A return of $23,000 occurs at...
Q.30) A $100,000 investment is make over a 10-years period. A return of $23,000 occurs at the end of the first year. Each successive year yields a return that is $2,000 les than the pervious year's return. If the money is worth 8%, what is the equivalent present worth for the investment? What is the equivalent annual worth for the investment? What is the equivalent future worth for the investment?
A $10,000 investment would return a series of $3,000 year-end payments over the next 5 years...
A $10,000 investment would return a series of $3,000 year-end payments over the next 5 years if no inflation were present. However, an average inflation rate of 6 percent is expected to increase the payments accordingly. If the annual market rate of interest remains at 13 percent, determine the present equivalent worth of the investment
PROBLEM A $10,000 investment would return a series of $3,000 year-end payments over the next 5...
PROBLEM A $10,000 investment would return a series of $3,000 year-end payments over the next 5 years if no inflation were present. However, an average inflation rate of 6 percent is expected to increase the payments accordingly. If the annual market rate of interest remains at 13 percent, determine the present equivalent worth of the investment
Problem (5): An investment pays $ 30,000 after five years. a) If the annual inflation rate...
Problem (5): An investment pays $ 30,000 after five years. a) If the annual inflation rate is 8%, what is the real value of the $30,000 in today's dollars? b) If the annual inflation rate is 8% and the real interest rate is 12%, what is the present worth of the investment return? c) What Actual-dollar interest rate is equivalent to a real interest rate of 12% when the annual inflation rate is 8% d) Compute the present worth using...
You made an investment over the past year, and your nominal return was 24.2%. Over the same year, the rate of inflation...
You made an investment over the past year, and your nominal return was 24.2%. Over the same year, the rate of inflation was 2.3%. What was the real rate of return for this investment?
If I have a 10 year investment with a 5% rate of return and a $1000...
If I have a 10 year investment with a 5% rate of return and a $1000 initial investment, what will happen if my inflation rate is bigger than my rate of return? . I will have less money than I invested after controlling for inflation B. I will have more money than I invested after controlling for inflation C. It depends on the tax rate D. It depends on my annual investment
Swagelok Enterprises is a manufacturer of miniature fittings and valves. Over a 5-year period, the costs...
Swagelok Enterprises is a manufacturer of miniature fittings and valves. Over a 5-year period, the costs associated with one product line were as follows: first cost of $21,000, and annual costs of $19,000. Annual revenue was $30,000 and the used equipment was salvaged for $5,000. What rate of return did the company make on this product? The rate of return that the company made on the product is 30
You invest in a stock over a 5-year period. The returns in each of the 5...
You invest in a stock over a 5-year period. The returns in each of the 5 years are: 10%, 1%, -12%, 4%, and 20%. For all questions, answer should be given in terms of %, and rounded to one decimal place. What is the 5-year Holding Period Return (HPR) of your stock investment? (in %, 1 decimal place) What is the arithmetic mean (this is just the normal mean) annual return of the investment? (in %, 1 decimal place) What...
Jullet made an investment that will generate the following cash flows over a 3 year period....
Jullet made an investment that will generate the following cash flows over a 3 year period. Year 0 Year 1 Year 2 Taxable revenue $16,000 $23,000 $33,000 Deductible expenses (5,000) (6.000) (7.500) Non deductible expenses (1.200) (2000) 14.300) Juliet's marginal rate of tax is 20 % and she uses a 6% discount rate. What is the net present value of the transaction? Multiple Choice 0 $30,028 O $33,557 O $39781 O $32,868
Q.30) A $100,000 investment is make over a 10-years period. A return of $23,000 occurs at the end of the first year. Each successive year yields a return that is $2,000 les than the pervious year's return. If the money is worth 8%, what is the equivalent present worth for the investment? What is the equivalent annual worth for the investment? What is the equivalent future worth for the investment?
A $10,000 investment would return a series of $3,000 year-end payments over the next 5 years if no inflation were present. However, an average inflation rate of 6 percent is expected to increase the payments accordingly. If the annual market rate of interest remains at 13 percent, determine the present equivalent worth of the investment
PROBLEM A $10,000 investment would return a series of $3,000 year-end payments over the next 5 years if no inflation were present. However, an average inflation rate of 6 percent is expected to increase the payments accordingly. If the annual market rate of interest remains at 13 percent, determine the present equivalent worth of the investment
Problem (5): An investment pays $ 30,000 after five years. a) If the annual inflation rate is 8%, what is the real value of the $30,000 in today's dollars? b) If the annual inflation rate is 8% and the real interest rate is 12%, what is the present worth of the investment return? c) What Actual-dollar interest rate is equivalent to a real interest rate of 12% when the annual inflation rate is 8% d) Compute the present worth using...
Swagelok Enterprises is a manufacturer of miniature fittings and valves. Over a 5-year period, the costs associated with one product line were as follows: first cost of $21,000, and annual costs of $19,000. Annual revenue was $30,000 and the used equipment was salvaged for $5,000. What rate of return did the company make on this product? The rate of return that the company made on the product is 30
You invest in a stock over a 5-year period. The returns in each of the 5 years are: 10%, 1%, -12%, 4%, and 20%. For all questions, answer should be given in terms of %, and rounded to one decimal place. What is the 5-year Holding Period Return (HPR) of your stock investment? (in %, 1 decimal place) What is the arithmetic mean (this is just the normal mean) annual return of the investment? (in %, 1 decimal place) What...
Jullet made an investment that will generate the following cash flows over a 3 year period. Year 0 Year 1 Year 2 Taxable revenue $16,000 $23,000 $33,000 Deductible expenses (5,000) (6.000) (7.500) Non deductible expenses (1.200) (2000) 14.300) Juliet's marginal rate of tax is 20 % and she uses a 6% discount rate. What is the net present value of the transaction? Multiple Choice 0 $30,028 O $33,557 O $39781 O $32,868
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