rate of return for 1 year= (final value/initial value)-1
=(4100/2500)-1 =.64 =64%
You have an investment opportunity that requires an initial investment of $2,500 today and will pay...
You have an investment opportunity that requires an initial investment of $8,000 today and will pay $7,500 in one year. What is the IRR of this opportunity?
İ need both, please 3.- You have an investment opportunity that requires an initial investment of $2500 today and will pay $3000 in one year. What is the IRR of this opportunity? (10 points) 4.-You need to borrow 2000, bank A offers 7.9% interest semiannually, bank B offers 8% compounded quarterly. Which is the best option for you? (10 points)
An investment opportunity requires a payment of $990 for 12 years, starting a year from today. If your required rate of return is 10.0 percent, what is the value of the investment to you today? (Round factor values to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25.) Present value of investment $
Suppose you have a real estate opportunity that requires $100,000 investment today but will pay you $250,000 in 8 years. What interest rate, r, would you need so that the present value of what you get is equal to the present value of what you give up? a.) 10.135% b) 11.135% c) 12.135% d) 9.135% please show work on how you answered each!
5.An investment will pay you $3,096 in 1 years if you pay $1,980 today. What is the implied rate of return? (Convert to a decimale. Round to 2 decimal places.) 6.In 1998, the average price of a gallon of gas was $1.09. Today, the average price of a gallon of gas is $2.84. At what annual rate has a gallon of gas increased over the last 20 years? (Answer as a percent. Enter only numbers and decimals in your response....
Nielson Motors is considering an opportunity that requires an investment of $1,000,000 today and will provide $250,000 one year from now, $450,000 two years from now, and $650,000 three years from now. The Internal Rate of return of this project is closest to: 10.2% 12.2% 14.2% 16.2%
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?
Q4 You are looking at an investment that requires you to invest $51 today. You'll get $100 in one year, but you must pay out $50 in two years. Calculate the internal rate of return (IRR) on this Investment.
workouu fully please Q11. Problem Type: An investment opportunity requires an initial investment of $25,000. If you make this investment today, you will receive a cash flow of $8,000 at the end of each of the next five years. Assuming you require a return of 14% on this investment, what is its net present value? A. B. - $ 9,596.68 -$ 3,746.72 +$ 2,464.65 +$ 3,746.72 + $27,880.83
Self-Study Problem 5.04 You have an opportunity to invest $4,800 today and receive $5,400 in three years. What would be the return on your investment if you accepted this opportunity? (Round answer to 2 decimal places, e.g. 52.75.) Return on investement