An investment promises to pay you cash flows of $12,000 at the end of each year...
You have just deposited $12,000 into an account that promises to pay you an annual interest rate of 6.7 percent each year for the next 8 years. You will leave the money invested in the account and 20 years from today, you need to have $44,950 in the account. What annual interest rate must you earn over the last 12 years to accomplish this goal?
16) You are offered an investment that will pay the following cash flows at the end of each of the next five years at a cost of $800. What is the Net Present Value (NPV) if the required rate of return is 12% per year? Period Cash Flow 0 $0 1 $100 2 $200 3 $300 4 $400 5 $500 Remember that Excel’s NPV function doesn't really calculate the net present value. Instead, it simply calculates the present value of...
An investment promises to pay $30 each year for the next four years. In four years, it will also pay $1000. Your required return on this investment is 7%. What is the value of the investment today? What is the value of the investment in one year? What is the value of the investment in two years? What is the value of the investment in ten years?
The Milken Company is offering you an investment that promises you $10,000 at the end of 11 years if you invest $ 7,779 today. What is the annual return on this investment?
Your father LeBron paid $230,000 for an investment that promises to pay $4,500 at the end of each of the next 5 years, then an additional lump sum payment of $25,500 at the end of the 6th year. What is the expected rate of return (IRR) on this investment? Solve without Excel.
You are considering a project that promises you cash flows of 554 USD each year for 3 years. Based on the riskiness of the project, you require a 12 percent return. What is the maximum you should be willing to pay? You are considering a project that promises you cash flows of 508 USD each year for 5 years. Based on the riskiness of the project, you require a 12 percent return. The cost to buy into the project is...
Suppose a condo generates $12,000 in cash flows in the first year. If the cash flows grow at 4% per year, the interest rate is 9%, and the building will be sold at the end of 22 years with a value of $70,000, what is the present value of the condo's cash flow? Enter your response below (rounded to 2 decimal places). Number If the annual percentage rate (APR) is 5% and the compounding period is monthly, what is the...
An investment promises to pay $1.25 in five years. After that, the investment will pay a cash flow each year that is 2% higher than the previous year. This will continue indefinitely. The required return on this investment is 10%. What is the value of the investment today? What is the value of the investment in three years? What is the value of the investment in ten years?
Your father LeBron paid $230,000 for an investment that promises to pay $4,500 at the end of each of the next 5 years, then an additional lump sum payment of $25,500 at the end of the 6th year. What is the expected rate of return (IRR) on this investment? Solve without Excel, please include equations and steps.
1) You are looking into an investment that will pay you $12,000 per year for the next 10 years. If you require a 15% return, what is the most you would pay for this investment?