ZuoTi.Pro
Question

You have been offered the opportunity to invest in a project that will pay $4,104 per year at the end of years one through th
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
Answer
Year Cash flow PVIF at 10.8% PV at 10.8%
1 $                   4,104 0.90253 $              3,703.97
2 $                   4,104 0.81456 $              3,342.94
3 $                   4,104 0.73516 $              3,017.09
4 $                 14,446 0.66350 $              9,584.92
5 $                 14,446 0.59883 $              8,650.64
PV of the cash flow pattern $            28,299.56 Answer
0 0
Add a comment
Know the answer?
Add Answer to:
You have been offered the opportunity to invest in a project that will pay $4,104 per...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • You have been offered the opportunity to invest in a project that will pay $4,773 per...

    You have been offered the opportunity to invest in a project that will pay $4,773 per year at the end of years one through three and $14,715 per year at the end of years four and five. If the appropriate discount rate is 13.5 percent per year, what is the present value of this cash flow pattern? Round the answer to two decimal places.

  • You have been offered the opportunity to invest in a project that will pay $4,856 per...

    You have been offered the opportunity to invest in a project that will pay $4,856 per year at the end of years one through three and $11,840 per year at the end of years four and five. If the appropriate discount rate is 14.4 percent per year, what is the present value of this cash flow pattern? Round the answer to two decimal places.

  • You have been offered the opportunity to invest in a project that will pay $1,367 per...

    You have been offered the opportunity to invest in a project that will pay $1,367 per year at the end of years one through three and $11,281 per year at the end of years four and five. If the appropriate discount rate is 18.8 percent per year, what is the present value of this cash flow pattern? Round the answer to two decimal places.

  • You have been offered the opportunity to invest in a project that will pay $4,856 per...

    You have been offered the opportunity to invest in a project that will pay $4,856 per year at the end of years one through three and $11,840 per year at the end of years four and five. If the appropriate discount rate is 14.4 percent per year, what is the present value of this cash flow pattern? Round the answer to two decimal places.

  • You have been offered the opportunity to invest in a project that will pay $3,556 per...

    You have been offered the opportunity to invest in a project that will pay $3,556 per year at the end of years one through three and $13,104 per year at the end of years four and five. If the appropriate discount rate is 17.1 percent per year, what is the present value of this cash flow pattern? Round the answer to two decimal places. Thank you.

  • Question 3 (1 point) You have been offered the opportunity to invest in a project that...

    Question 3 (1 point) You have been offered the opportunity to invest in a project that will pay $4,297 per year at the end of years one through three and $10,125 per year at the end of years four and five. If the appropriate discount rate is 17.9 percent per year, what is the present value of this cash flow pattern? Round the answer to two decimal places

  • You have been offered the opportunity to invest in a project that will pay $4,940 per...

    You have been offered the opportunity to invest in a project that will pay $4,940 per year at the end of years one through three and $6,062 per year at the end of years four and five. These cash flows will be placed in a saving account that pays 16.36 percent per year. What is the future value of this cash flow pattern at the end of year five? Round the answer to two decimal places.

  • 1. Exercise 17.1 A firm has the opportunity to invest in a project having an initial...

    1. Exercise 17.1 A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash inflows (before depreciation and taxes) are expected to be $5,000 per year for five years. The firm uses the straight-line depreciation method with a zero salvage value and has a (marginal) income tax rate of 40 percent. The firm’s cost of capital is 12 percent. a) What is the internal rate of return (IRR) for the project? ( Answer-------------)(Hint:...

  • You have been offered a unique investment opportunity. If you invest $ 15000 today, you will...

    You have been offered a unique investment opportunity. If you invest $ 15000 today, you will receive $750 one year from​ now, $2,250 two years from​ now, and $15,000 ten years from now. a. What is the NPV of the investment opportunity if the interest rate is 6% per​ year? Should you take the​ opportunity? b. What is the NPV of the investment opportunity if the interest rate is 2% per​ year? Should you take the​ opportunity?

  • 1. Present Value and Multiple Cash Flows [LO1] Investment X offers to pay you $4,200 per...

    1. Present Value and Multiple Cash Flows [LO1] Investment X offers to pay you $4,200 per year for eight years, whereas Investment Y offers to pay you $6,100 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent? 2. Future Value and Multiple Cash Flows [LO1] Fuente, Inc., has identified an investment project with the following cash flows. If the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT