You are considering investing in a 1-year project with a rate of return of 12%. How...
You are considering investing in a 1-year project with a rate of return of 12%. How much will you need to invest to earn a payoff of $1000 upon completion of the project?
Homework Answers
Amount need to invest = $1000/0.12 =$ 8,333.33
If you invest $ 8,333.33 for one year at rate of return 12% then you will get $8,333.333×0.12= $1000.
Thanks
Let me know if you have any doubt
Add Answer to:
You are considering investing in a 1-year project with a rate of
return of 12%. How...
You’re considering investing $35,000 in a new development project which you expect to complete in five...
You’re considering investing $35,000 in a new development project which you expect to complete in five years. You’ll earn all your return when you sell the project (i.e., you earn nothing in years 1-4). Answer the following: You’ve done some research and similar projects with similar risks usually earn 16% annual interest. Assuming that you have the option to invest in one of the other projects instead, what is the minimum sales price you would need to receive in year...
14. You are planning on investing in a project which will last 4 years. You will...
14. You are planning on investing in a project which will last 4 years. You will invest $5,000 at a rate of 4%. Calculate the Net Present Value (NPV) of the project. You expect the project to return the following: (12 points) Year Return at the end of the year $1000 $1000 $2000 $2000
1- Alpha Moose Transporters is considering investing in a one-year project that requires an initial investment...
1- Alpha Moose Transporters is considering investing in a one-year project that requires an initial investment of $500,000. To do so, it will have to issue new common stock and will incur a flotation cost of 2.00%. At the end of the year, the project is expected to produce a cash inflow of $550,000. The rate of return that Alpha Moose expects to earn on its project (net of its flotation costs) is
Year Return at the end of the year $1000 $1000 $2000 $2000 14. You are planning...
Year Return at the end of the year $1000 $1000 $2000 $2000 14. You are planning on investing in a project which will last 4 years. You will invest $5,000 at a rate of 4%. Calculate the Net Present Value (NPV) of the project. You expect the project to return the following: (12 points) Year . . Return at the end of the year $1000 $1000 4 S2000 Year Present Value Cash indd Flow -5000 $1000 $1000 $2000 $2000 -5000...
A company is considering investing in a project that is expected to return $270,000 four years...
A company is considering investing in a project that is expected to return $270,000 four years from now. How much is the company willing to pay for this investment if the company requires a 10% return? (Use appropriate factor(s) from the tables provided.) A) $184,410 B) $17,591 C) $227,749 D) $270,000 E) $99,666
Mr. Sombat is considering investing in a projects as follows: Mutually Exclusive Project interest 124 Project...
Mr. Sombat is considering investing in a projects as follows: Mutually Exclusive Project interest 124 Project A Project B (15,000) (105,000) 10,000 30,000 20,000 30,000 30,000 30,000 40,000 30,000 There are some information as follows technique Project A Project B NPV I IRR 9 [ 15.877. 2 I 16.03% MIRA 14.787. Based on the information provided, financial managers should decide to invest in any project, specify the reason for the decision by calculating some missing in for motion to support...
1. ABC Investing had an outstanding rate of return for year 1 of 100% (in the...
1. ABC Investing had an outstanding rate of return for year 1 of 100% (in the penny stock market). If you invested $100K at the beginning of the year then you would have $____________ at the end of year 1. ABC Investing’s marketing team decided not to reveal their Rate of Return in year 2, but their advertisement states an average of 25% over the last 2 years. So, the ROR for year 2 was how much? ________% From your...
Please show work! 2. You are considering investing in a real estate project. Your one ownership...
Please show work!
2. You are considering investing in a real estate project. Your one ownership unit would cost $30,000. The project is expected to generate annual cash flows for you of: $4,500 in year 1, $5,000 in years 2-5, $8,000 in year 6 and $19,000 in year 7. With a discount rate of 8.0%, what is the net present value (NPV) of this investment? Should you invest in this deal? Why or why not?
Mr. Thompson is considering investing in two period projects with the following probabilities and cash flows:...
Mr. Thompson is considering investing in two period projects with the following probabilities and cash flows: Probability Cash Flow Period 1 0.25 1000 0.5 1200 0.25 1400 Period 2 0.3 600 0.5 1000 0.2 1400 The discount rate is 7%, and the initial investment is $2,000. How much is the expected NPV of this project? Should Mr. Thompson invest or not? Briefly explain your reasoning.
Tesla is considering investing in Project M. The projects generate the following cash flows: Year 0...
Tesla is considering investing in Project M. The projects generate the following cash flows: Year 0 Year 1 Year 2 Project M -464 247 330 The MARR is 10% per year, compounded annually. Compute the Internal Rate of Return (IRR) of the project. (note: if your answer is 17.25% then write 17.25 as your answer, not 0.1725)
14. You are planning on investing in a project which will last 4 years. You will invest $5,000 at a rate of 4%. Calculate the Net Present Value (NPV) of the project. You expect the project to return the following: (12 points) Year Return at the end of the year $1000 $1000 $2000 $2000
Year Return at the end of the year $1000 $1000 $2000 $2000 14. You are planning on investing in a project which will last 4 years. You will invest $5,000 at a rate of 4%. Calculate the Net Present Value (NPV) of the project. You expect the project to return the following: (12 points) Year . . Return at the end of the year $1000 $1000 4 S2000 Year Present Value Cash indd Flow -5000 $1000 $1000 $2000 $2000 -5000...
Mr. Sombat is considering investing in a projects as follows: Mutually Exclusive Project interest 124 Project A Project B (15,000) (105,000) 10,000 30,000 20,000 30,000 30,000 30,000 40,000 30,000 There are some information as follows technique Project A Project B NPV I IRR 9 [ 15.877. 2 I 16.03% MIRA 14.787. Based on the information provided, financial managers should decide to invest in any project, specify the reason for the decision by calculating some missing in for motion to support...
Please show work!
2. You are considering investing in a real estate project. Your one ownership unit would cost $30,000. The project is expected to generate annual cash flows for you of: $4,500 in year 1, $5,000 in years 2-5, $8,000 in year 6 and $19,000 in year 7. With a discount rate of 8.0%, what is the net present value (NPV) of this investment? Should you invest in this deal? Why or why not?
Tesla is considering investing in Project M. The projects generate the following cash flows: Year 0 Year 1 Year 2 Project M -464 247 330 The MARR is 10% per year, compounded annually. Compute the Internal Rate of Return (IRR) of the project. (note: if your answer is 17.25% then write 17.25 as your answer, not 0.1725)
Most questions answered within 3 hours.
-
26) Briefly describe, using words or simple diagrams, the
chemiosmotic theory for coupling oxidation to phosphorylation...
asked 25 minutes ago -
Suppose that XX is a random variable with mean 16 and standard
deviation 5 . Also...
asked 1 hour ago -
Calculate the number density of argon gas at a temperature of
24C and a pressure of...
asked 4 hours ago -
Alternative
Classification
How to Estimate
Probabilities from Data? ( For continuous Attributes)
And How to generate...
asked 4 hours ago -
An explosion breaks a 20.0-kg object into three parts. The
object is initially moving at a...
asked 5 hours ago -
Calculate the approximate number of residues of Rubisco, which
is involved in carbon fixation in plants,...
asked 6 hours ago -
Other decisions about scientific claims can have a much broader
impact.ENERGYarrow-10x10.png, environment, health, security - all...
asked 7 hours ago -
I need to write a research paper and work cited about this
topic: The United States...
asked 7 hours ago -
Hello! I was wondering if I could have some help?
If the vapor pressure of carvone...
asked 8 hours ago -
An economist wants to estimate the mean per capita income (in
thousands of dollars) for a...
asked 8 hours ago -
What would be the input/output characteristic of a circuit
obtained by putting two of your 2's-complementers...
asked 8 hours ago -
In Drosophila, the transition from the syncytial blastoderm
stage to the cellular blastoderm stage is a...
asked 8 hours ago