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.
Homework Answers
Cash flows at the end of the years 1, 2, and 3 is $3,556 and at the end of years 4, and 5 are $13,104. Here, in the below images year 1 represents the next year after which the investment is made. This is because the investment is made at the end of year. The present value is calculated as follows:
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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 $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 $4,104 per...
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 three and $14,446 per year at the end of years four and five. If the appropriate discount rate is 10.8 percent per year, what is the present value of this cash flow pattern?
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 $ 9,100 today, you...
You have been offered a unique investment opportunity. If you invest $ 9,100 today, you will receive $ 455 one year from now, $ 1365 two years from now, and 9100 in ten years. a. What is the NPV of the opportunity if the cost of capital is 6.1 % per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.1 % per year? Should you take it...
You have been offered a unique investment opportunity. If you invest $ 11,00 today, you will...
You have been offered a unique investment opportunity. If you invest $ 11,00 today, you will receive $ 555 one year from now, $ 1,665 two years from now, and $ 11,100 in ten years. a. What is the NPV of the opportunity if the cost of capital is 6.5 % per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.5 % per year? Should you take it...
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 three and $14,446 per year at the end of years four and five. If the appropriate discount rate is 10.8 percent per year, what is the present value of this cash flow pattern?
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 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.
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