Calculate the price willing to pay as follows:
Price willing to pay = Amount /(1+rate)^1 + Amount /(1+rate)^2 + Amount /(1+rate)^3 + Amount /(1+rate)^4 + Amount /(1+rate)^5
Price willing to pay = $15,000/(1+11%)^1 + $17,000/(1+11%)^2 + $14,000/(1+11%)^3 + $0/(1+11%)^4 + $110,000/(1+11%)^5
Price willing to pay = $102,827.42.
6. You are offered a real estate investment with a schedule that shows the following returns...
Rich is evaluating an investment that will provide the following returns at the end of each of the following years: Years 1-3: $14,000 Years 4-5: $0 Years 6-10: $20,000 believes he should earn an annual return of 8 percent on this investment. How much should he be willing to pay for this investment?
Ignatius is evaluating an investment that will provide the following returns at the end of each of the following years: year 1, $12,500; year 2, $9,000; year 3, $7,000; year 4, $5,000; year 5, $2,000; year 6, $0; and year 7, $15,000. Ignatius believes that he should earn an annual rate of 10 percent compounded annually on this investment. How much should he pay for this investment? If he expects to earn an annual return of 10 percent compounded monthly,...
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
Question 8 5 points Save Answ You are offered an investment that will pay $1,120 at the end of year 1, pay $1,460 at the end of year 2, and pay $1,694 at the end of year 3. If you can earn 9% on similar investments, what is the most you would pay for this investment?
#stion 23 5 points Saw You are offered an investment that will pay $1.120 at the end of year 1. pay $1,460 at the end of year 2, and pay 51,694 at the end of year 3. If you can earn 9% on similar investments, what is the most you would pay for this investment? Moving to another question will save this response. is Question 23 of
5 points sa You are offered an investment that will pay 51,120 at the end of year 1. pay $1,460 at the end of year 2, and pay $1994 at the end of year 3. If you can earn 9% on similar investments, what is the most you would pay for this investment?
You are offered an investment that will pay $1,120 at the end of year 1, pay $1,460 at the end of year 2, and pay $1,694 at the end of year 3. If you can earn 9% on similar investments, what is the most you would pay for this investment?
1. You are offered an investment that will pay you $200 in one year, $400 the next year, $600 the next year and $800 at the end of the next year. You can earn 10 percent on very similar investments. What is the most you should pay for this one?
5. A real estate investor is considering an investment in a building that will generate profits of $22,000 at the end of each year for the next 10 years. The investor requires a 22% return on the investment to compensate for the risk they are taking. a. How much should the investor pay today for the investment? b. How much should the investor pay today for the investment if profits at the then end of year 1 are $22,000, and...
12-3. Assume that you are about to sell property (a vacant
parcel of real estate) you own but otherwise have no use for. The
net-of-sales-commission selling price for the property is $470,000.
You are willing to finance this transaction over a 16-year period
and have told the buyer that you expect a 15% pretax return on the
transaction. The buyer has asked you for a payment schedule under
several alternatives.
Required:
1. What will be your periodic cash receipt, to...