Your brother-in-law is encouraging you to invest $25,000 in a project which will have a three-year...
Your brother-in-law is encouraging you to invest $25,000 in a project which will have a three-year expected payoff of $50,000. Using the Rule of 72 what is the expected annualize investment return and cite your reasons for investing or not investing in this scheme.
Homework Answers
Add Answer to:
Your brother-in-law is encouraging you to invest $25,000 in a
project which will have a three-year...
You have $12,000 to invest, and three different funds from which to choose. The municipal bond...
You have $12,000 to invest, and three different funds from which to choose. The municipal bond fund has a 7% return, the local bank's CDs have an 8% return, and the high-risk account has an expected (hoped-for) 12% return. To minimize risk, you decide not to invest any more than $2,000 in the high-risk account. For tax reasons, you need to invest at least three times as much in the municipal bonds as in the bank CDs. Assuming the year-end...
Suppose that you have $14,000 to invest and you are trying to decide between investing in project...
23
24
25
Suppose that you have $14,000 to invest and you are trying to decide between investing in project A or project B. If you invest in project A, you will receive a payment of $16,500 at the end of 2 years. If you invest in project B, you will receive a payment of $25,000 at the end of 11 years. Assume the annual interest rate is 5 percent and that both projects carry no risk. Instructions: Round your...
You have $25,000 to invest in a stock portfolio. Your choices are Stock A with an...
You have $25,000 to invest in a stock portfolio. Your choices are Stock A with an expected return of 13 percent and Stock B with an expected return of 9 percent Required: (a) If your goal is to create a portfolio with an expected return of 11 percent, how much money will you invest in Stock B? (b)If your goal is to create a portfolio with an expected return of 13 percent, how much money will you invest in Stock...
You have plenty of cash to invest. You are considering an investment of $125,000 in a...
You have plenty of cash to invest. You are considering an investment of $125,000 in a project which is expected to earn $14425 a year for ten years. Is it an attractive investment if your minimum expected annual rate of return is 5% (compound interest)? Calculate the expected annual rate of return (R) of the project. (6 points) (Please give proper steps by using the Present Value of an Annuity!
Your company is investing in a 6-year project. The cost of the machine is $25,000 with...
Your company is investing in a 6-year project. The cost of the machine is $25,000 with a salvage value of $5000 at the end of the project. The machine will save labor costs but will have operating costs of $3000/ year. What is the annual savings in labor in order to make a 10% return on your investment? $5,092 $8,740 $6,283 $8,092
You have plenty of cash to invest. You are considering an investment of $125,000 in a...
You have plenty of cash to invest. You are considering an investment of $125,000 in a project which is expected to earn $14425 a year for ten years. Is it an attractive investment if your minimum expected annual rate of return is 5% (compound interest)? Calculate the expected annual rate of return (R) of the project. (6 points) NO TABLE, Full calculations, explain what happened, please have the correct answers when using an equation...
You have plenty of cash to invest. You are considering an investment of $125,000 in a...
You have plenty of cash to invest. You are considering an investment of $125,000 in a project which is expected to earn $14425 a year for ten years. Is it an attractive investment if your minimum expected annual rate of return is 5% (compound interest)? Calculate the expected annual rate of return (R) of the project. (6 points) (NO TABLES ONLY HAND CALCULATION) As well explain which equation you have used
You have plenty of cash to invest. You are considering an investment of $125,000 in a...
You have plenty of cash to invest. You are considering an investment of $125,000 in a project which is expected to earn $14425 a year for ten years. Is it an attractive investment if your minimum expected annual rate of return is 5% (compound interest)? Calculate the expected annual rate of return (R) of the project. (6 points) NO TABLE and use a simple equation. No hit or miss trial
You are the head of the project selection team at SIMSOX.* Your team is considering three...
You are the head of the project selection team at SIMSOX.* Your
team is considering three different projects. Based on past
history, SIMSOX expects at least a rate of return of 20 percent.
Given the following information for each project, which one should
be SIMSOX’s first priority? Should SIMSOX fund any of the other
projects? If so, what should be the order of priority based on
return on investment? (See chart below)
Project: Dust Devils Year Investment Revenue Stream 0...
Suppose you have an opportunity to invest in a project, which is expected to generate $6,800...
Suppose you have an opportunity to invest in a project, which is
expected to generate $6,800 in year 1, $7,200 in year 2, and $7,500
in year 3. The appropriate risk-adjusted discount rate for the
project is 10.5 percent. What is project’s initial investment when
the project's NPV is $2,609.25? Assume the tax rate is zero.
$15,000.00
$17,609.25
$20,218.50
$21,500.00
23
24
25
Suppose that you have $14,000 to invest and you are trying to decide between investing in project A or project B. If you invest in project A, you will receive a payment of $16,500 at the end of 2 years. If you invest in project B, you will receive a payment of $25,000 at the end of 11 years. Assume the annual interest rate is 5 percent and that both projects carry no risk. Instructions: Round your...
You have $25,000 to invest in a stock portfolio. Your choices are Stock A with an expected return of 13 percent and Stock B with an expected return of 9 percent Required: (a) If your goal is to create a portfolio with an expected return of 11 percent, how much money will you invest in Stock B? (b)If your goal is to create a portfolio with an expected return of 13 percent, how much money will you invest in Stock...
You are the head of the project selection team at SIMSOX.* Your
team is considering three different projects. Based on past
history, SIMSOX expects at least a rate of return of 20 percent.
Given the following information for each project, which one should
be SIMSOX’s first priority? Should SIMSOX fund any of the other
projects? If so, what should be the order of priority based on
return on investment? (See chart below)
Project: Dust Devils Year Investment Revenue Stream 0...
Suppose you have an opportunity to invest in a project, which is
expected to generate $6,800 in year 1, $7,200 in year 2, and $7,500
in year 3. The appropriate risk-adjusted discount rate for the
project is 10.5 percent. What is project’s initial investment when
the project's NPV is $2,609.25? Assume the tax rate is zero.
$15,000.00
$17,609.25
$20,218.50
$21,500.00
Most questions answered within 3 hours.
-
From past history, the scores on a statistics test are normally
distributed with a mean of...
asked 24 minutes ago -
Calculate the gravitational field strength on the highest peak
of Everest (8848 m above the Earth).
asked 24 minutes ago -
the energy value of carbohydrates is 4.0 cal/g. calculate the
energy in 250 g of carbohydrates,...
asked 26 minutes ago -
i
need the summary of this article “Why I Don’t Trust The Video Games
Cause Violence”...
asked 45 minutes ago -
Draw the reactants and products of the following
reaction:
3-ethyl-2-heptene + HOH → 3-ethyl-3-heptanol +
3-ethyl-2-heptanol...
asked 43 minutes ago -
Determine the ratio of adipic acid and butylene glycol that
should be used to obtain a...
asked 52 minutes ago -
Calculate the ratio of the resistance of 11.0 m of aluminum wire
2.5 mm in diameter,...
asked 45 minutes ago -
Kinkaid Co. is incorporated at the beginning of this year and
engages in a number of...
asked 49 minutes ago -
when setting up a simple pendulum, calculate the string length
required for the period to equal...
asked 1 hour ago -
: A small but very close dense mass of 389 kg is brought close
to a...
asked 1 hour ago -
Create a class called Hotel. The hotel class will track the
current reservations for your one-room...
asked 1 hour ago -
In space, a 4.0 kg metal ball moving 30 m/s has a head on
collision with...
asked 1 hour ago