If $80000 is invested in a certain business at the start of the year, the investor will receive $30000 at the end of each of the next 3 years. What is the present value of this business opportunity if the interest rate is 2.5% per year?
If $80000 is invested in a certain business at the start of the year, the investor...
If $10000 is invested in a certain business at the start of the year, the investor will receive $2700 at the end of each of the next 6 years. What is the present value of this business opportunity if the interest rate is 7% per year?
If $8,000 is invested in a certain business at the start of the year, the investor will receive $2,400 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 4% per year? O A. $1,139 OB. $712 O C. $356 OD. $854
If $11,000 is invested in a certain business at the start of the year, the investor will receive $3,300 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 6% per year? O A. $522 O B. $435 OC. $696 O D. $217
Need help, please show work for solutions. 1.) An investor just invested $10,000 in an investment that is expected to earn a 6% interest rate. Assuming the 6% annual return is realized, what will be the value of the investment at the end of 25 years? 2.) If you deposit $45,000 into a 5-year CD today earning 4% interest compounded quarterly, what would be the account balance be at the end of 5 years? 3.) A 22-year old college student...
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $5,760 at the end of each of the next 3 years. The opportunity requires an initial investment of $1,440 plus an additional investment at the end of the second year of $7.200. What is the NPV of this opportunity if the interest rate is 2.5% per year? Should Marian take it? What is the NPV of this opportunity if the interest...
A new start-up company promises to pay an investor each quarter for the next two years. The company will pay $20,675.00 per quarter for the first four quarters, and then $25,775.00 per quarter for the following four quarters. If the investor wants a 11.68% APR return with quarterly compounding, what is the value of the investment opportunity today?
An investor is considering purchasing a financial security that promises to pay $653 per year for the next 3 years, then $2,268 per year for the next 2 years after that. If the investor thinks the appropriate discount rate is 7.2 percent for investments that have this level of risk, what would be the present value of those five payments today?
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $4,360 at the end of each of the next 3 years. The opportunity requires an initial investment of $1,090 plus an additional investment at the end of the second year of $5,450. What is the NPV of this opportunity if the interest rate is 1.9% per year? Should Marian take it? What is the NPV of this opportunity if the interest...
Problem It An investor has $1,000,000 to invest at the start of year I. He can invest in five different bach fund has different availability and maturity times as shown in the table below. As an sen dollr invested in fund A at the beginning of year I returns 50.50 at the start of year 2 and at the start of year 3, Similarly, each dollar invested in fund B in year 2 yields $1.25 at the start of year...
Roxanne invested $490,000 in a new business 10 years ago. The business was expected to bring in $5,000 each month for the next 19 years (in excess of all costs). The annual cost of capital (or interest rate) for this type of business was 10% with monthly compounding. What is the value of the business today?