If the annual interest rate is 12 percent, what is the two-year discount factor? Question 14...
If the annual interest rate is 12 percent, what is the two-year discount factor?
Question 14 options:
|
1.2544 |
|
|
0.8065 |
|
|
0.8929 |
|
|
0.7972 |
Homework Answers
discount factor = 1 / (1+r)^n
where r is discount rate and n is time gap
= 1 / (1+0.12)^2
= 1 / (1.12^2)
= 1 / 1.2544
= 0.7972
Option D is correct.
Pls comment, if any further assistance is required
Add Answer to:
If the annual interest rate is 12 percent, what is the two-year
discount factor?
Question 14...
The reason that a discount factor in Year 3 is less than a discount factor in...
The reason that a discount factor in Year 3 is less than a discount factor in Year 2 is that Question 34 options: Kenner Company is considering two projects. Project A Project B Initial investment $85,000 $24,000 Annual cash flows $20,676 $ 6,011 Life of the project 6 years 5 years Depreciation per year $14,167 $ 4,800 Present value of an Annuity of $1 in Arrears Periods 8% 10% 12% 14% 1 0.926 0.909 0.893 0.877 2 1.783...
SIC PROBLEMs At an interest rate of 12%, the six-year discount factor is.507. How many dollars...
SIC PROBLEMs At an interest rate of 12%, the six-year discount factor is.507. How many dollars is S.507 worth in six years if invested at 12%? If the PV of $139 is $125, what is the discount factor? Ifthe cost ofcapital is 900, what is the PV of$374 paid in year 9? A project produces a cash flow of $432 in year 1, $137 in year 2, and $797 in year 3. If the cost ofcapital is 1500, what is...
Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr...
Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr 0.9449 0.8929 0.9449 0.8929 0.8929 0.7972 1.8378 1.6901 0.8437 0.7118 2.6814 2.4018 0.7972 0.6355 3.4786 3.0373 0.7533 0.5674 4.2319 3.6048 0.7118 0.5066 4.9437 4.1114 Assumption: Required annual effective rate (EPR) of 2 4 6 return is 12%. If an investment pays you $17,000 at the end of each year for 3 years, what is its present value? O $44,471 O...
Need assistance with this question. Part A is: What is the conventional payback period for Option...
Need assistance with this question.
Part A is:
What is the conventional payback period for Option A? Answer
-
What is the conventional payback period for Option B? Answer
-
Part B is:
What is the Present Worth of Option A? Answer -
What is the Present Worth of Option B? Answer -
I really appreciate the assistance
You are considering two investment options. In option A, you have to invest S5,500 now and $700 three years from now. In...
What is the five-year discount factor given a 15% annual discount rate? 0.497 0.750 0.625 0.250
What is the five-year discount factor given a 15% annual discount rate? 0.497 0.750 0.625 0.250
Problem 12-12 (algorithmic) Question Help The tree diagram in figure below describes the uncertain cash flows...
Problem 12-12 (algorithmic) Question Help The tree diagram in figure below describes the uncertain cash flows for an engineering project. The analysis period is two years, and MARR = 12% per year. Based on this information, a. What are the E(PW), V(PW), and SD(PW) of the project? b. What is the probability that PW20? WClick the icon to view the tree diagram. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12%...
Question 58 (1 point) Saved Suppose the nominal annual interest rate on a two year loan...
Question 58 (1 point) Saved Suppose the nominal annual interest rate on a two year loan is 16 percent and lenders expect inflation to be 10 percent in each of the two years. The annual real rate of interest is: 6 percent. 12 percent. 4 percent 16 percent
Present Value of Present Value of 1 Factor an Annuity of 1 Factor Period 1/2Yr Full-Yr...
Present Value of Present Value of 1 Factor an Annuity of 1 Factor Period 1/2Yr Full-Yr 1/2 Yr Full-Yr 0.9449 0.8929 0.9449 0.8929 0.8929 0.7972 1.8378 1.6901 0.8437 0.7118 2.6814 2.4018 0.7972 0.6355 3.4786 3.0373 0.7533 0.5674 4.2319 3.6048 0.7118 0.5066 4.9437 4.1114 2 4 6 Assumption: Required annual effective rate (EPR) of return is 12%. If an investment pays you $8,500 every 6 months for 3 years, starting at the beginning of each 6 month period, what is its...
If the 5-year discount factor is 0.91, the interest rate must be equal to ________
If the 5-year discount factor is 0.91, the interest rate must be equal to ________
If the 1-year discount factor is 0.92, the interest rate must be equal to ________.
If the 1-year discount factor is 0.92, the interest rate must be equal to ________.
SIC PROBLEMs At an interest rate of 12%, the six-year discount factor is.507. How many dollars is S.507 worth in six years if invested at 12%? If the PV of $139 is $125, what is the discount factor? Ifthe cost ofcapital is 900, what is the PV of$374 paid in year 9? A project produces a cash flow of $432 in year 1, $137 in year 2, and $797 in year 3. If the cost ofcapital is 1500, what is...
Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr 0.9449 0.8929 0.9449 0.8929 0.8929 0.7972 1.8378 1.6901 0.8437 0.7118 2.6814 2.4018 0.7972 0.6355 3.4786 3.0373 0.7533 0.5674 4.2319 3.6048 0.7118 0.5066 4.9437 4.1114 Assumption: Required annual effective rate (EPR) of 2 4 6 return is 12%. If an investment pays you $17,000 at the end of each year for 3 years, what is its present value? O $44,471 O...
Need assistance with this question.
Part A is:
What is the conventional payback period for Option A? Answer
-
What is the conventional payback period for Option B? Answer
-
Part B is:
What is the Present Worth of Option A? Answer -
What is the Present Worth of Option B? Answer -
I really appreciate the assistance
You are considering two investment options. In option A, you have to invest S5,500 now and $700 three years from now. In...
Problem 12-12 (algorithmic) Question Help The tree diagram in figure below describes the uncertain cash flows for an engineering project. The analysis period is two years, and MARR = 12% per year. Based on this information, a. What are the E(PW), V(PW), and SD(PW) of the project? b. What is the probability that PW20? WClick the icon to view the tree diagram. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12%...
Question 58 (1 point) Saved Suppose the nominal annual interest rate on a two year loan is 16 percent and lenders expect inflation to be 10 percent in each of the two years. The annual real rate of interest is: 6 percent. 12 percent. 4 percent 16 percent
Present Value of Present Value of 1 Factor an Annuity of 1 Factor Period 1/2Yr Full-Yr 1/2 Yr Full-Yr 0.9449 0.8929 0.9449 0.8929 0.8929 0.7972 1.8378 1.6901 0.8437 0.7118 2.6814 2.4018 0.7972 0.6355 3.4786 3.0373 0.7533 0.5674 4.2319 3.6048 0.7118 0.5066 4.9437 4.1114 2 4 6 Assumption: Required annual effective rate (EPR) of return is 12%. If an investment pays you $8,500 every 6 months for 3 years, starting at the beginning of each 6 month period, what is its...
Most questions answered within 3 hours.
-
what statement accurately depicts the similarities in
requirements between payroll and human resources function
asked 21 minutes ago -
Calculate the volume integral of the function T=z^2 over the
tetrahedron with corners (0,0,0), (1,0,0), (0,1,0),...
asked 2 hours ago -
I propose to you a game. You roll 2 dice. If the sum of the
numbers...
asked 3 hours ago -
Select the most likely lattice types for each of the following
salts: (a) BeF2; (b) CaO;...
asked 3 hours ago -
a
ball is thrown downward with velocity of 10m/s. calculate the final
velocity if it reaches...
asked 3 hours ago -
How many grams of ice at -15°C must be added to 705 grams of
water that...
asked 5 hours ago -
2. Balance sheet
The balance sheet provides a snapshot of the financial condition
of a company....
asked 5 hours ago -
In week 1 of the chemical equilibrium experiment, you and your
lab team will create a...
asked 6 hours ago -
Identify and describe five (5) characteristics of a good KM
measurement system. Be sure to include...
asked 6 hours ago -
What are at least five (5) workplace wellness best practices for
a successful wellness program? Explain...
asked 6 hours ago -
A pharmaceutical company is testing a new drug. Of the 110
people that received the drug,...
asked 6 hours ago -
Which of the following is NOT a mechanism for gene
regulation?
a. Phase variation in DNA....
asked 6 hours ago