The expected rate of return is calculated in excel with $10,000 as present value, $750 as annual payment for 5 years and $13250 as future value of the investment.
Therefore, the expected rate of return is 12.56%
5 pts Question 13 Bill paid $10,000 (at CFO) for an investment that promises to pay...
5 pts Bill paid $10,000 (at.CFO) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $14,450 at the end of the 5th year. What is the expected rate of return on this investment? Your answer should be between 8.12 and 21.96 rounded to 2 decimal places, with no special characters. 5 pts Question 14 Chelsea is buying her first condo for $200,000, and will...
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.
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.
5 pts Question 18 An investment promises the following cash flow stream: $1,000 at Time 0; $2,000 at the end of Year 1 (or att = 1); $3,000 at the end of Year 2:; and $5,000 at the end of Year 3. At a discount rate of 6.5 %, what is the present value of the cash flow stream? Your answer should be between 8343.00 and 11,000.00, rounded to 2 decimal places, with no special characters Question 19 5 pts...
DQuestion 13 5 pts Phoenix Solar is expected to pay a dividend of $3.60 in the upcoming year, and their stock is trading in the market today at $60 per share. Dividends are expected to grow at the rate of 7.2% per year. If the risk free rate of return is 4% and the expected return on the market portfolio is 12%, what is the stock's beta? | Your answer should be between 0.34 and 2.12, rounded to 2 decimal...
1. You just inherited some money, and a broker offers to sell you an annuity that pays $32,200 at the end of each year for 50 years. You could earn 8% on your money in other investments with equal risk. What is the most you should pay today for the annuity? 2. You have a chance to buy an annuity that pays $85,000 at the beginning of each year for 20 years. You could earn 12.5% on your money in...
Question 5 5 pts Lincoln National just paid out a dividend of $3.74 and dividends are expected to grow at 5% each year. If the required rate of return is 12%, what is the intrinsic value of the company's stock? Your answer should be between 14.75 and 78.62, rounded to 2 decimal places, with no special characters.
clal characters. 686163 Question 13 5 pts Illinois Tool Works is considering a project that has an initial cash outflow of $1.2 million and expected cash inflows of $310,000 per year for the next 5 years. What is the project's IRR? Your answer should be between 7.60 and 13.42, rounded to 2 decimal places, with no special characters. 5p Question 14 nd expected cash inflows. Hide Stop sharing anadian Pacific is considering a 500 in years 1, 2 and 3....
Question 6 5 pts Amber Company is considering a one-year project that requires an initial investment of $500,000. However, to raise this capital, the company will incur flotation costs that are 2% of the initial investment amount. At the enctof the year, the project is expected to produce a cash inflow of $562,000. What is the rate of return that the company expects to earn on this project after taking flotation costs into consideration? Your answer should be between 7.32...
Question 8 10 pts What would the value of an investment be if you were promised a 6% return with $1,000 monthly payments for 15 years and a lump sum paid at the end of $400,000? O $166,713 O $150,035 〇$281,496 O $340,748 o $247,680 Question 8 10 pts What would the value of an investment be if you were promised a 6% return with $1,000 monthly payments for 15 years and a lump sum paid at the end of...