An investment promises two payments of $700, on dates two and four months from today. If the required rate of return on the investment is 6.0%: What is the value of the investment today?
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An investment promises two payments of $700, on dates two and four months from today. If the required rate of return on the investment is 6.0%: What is the value of the investment today?
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- An investment offers $6,100 per year for 15 years, with the first payment occurring today. If the required return is 6 per cent, what is the value of the investment?An investment opportunity requires a payment of $620 for 12 years, starting a year from today. If required rate of return is 6.00 percent, what is the value of the investment to you today?An investment promises two payments of $610, on dates four and eight months from today. If the required rate of return on the investment is 5.1%: What is the value of the investment today? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
- 3. An investment promises two payments of $500, on dates 3 and 6 months from today. If the required return on investment is 9%: a) What is the value of the investment today?An investment will pay $25 per year (indefinitely), starting in one year’s time. The annual payments will grow at a rate of 3% per year. If the price of this investment is $200, what is its rate of return?An investment offers $2,500 per year for 8 years, with the first payment occurring one year from now. If the required return is 12%, what is the value of the investment?
- An investment promises two payments of $570, on dates three and six months from today. If the required rate of return on the investment is 4.7%:What is the value of the investment today? (Do not round intermediate calculations and round your final answer to 2 decimal places.Value today $.An investment offers $8800 per year for 14 years with the first payment occuring one year from now. Assume the required returnis 12 percent. a. What is the value of investment today? b. What would the value be if the payment occured for 39 years? c. What would the value be if teh payments occured for 74 years? d. What would the value be if the payments occured forever?an investment will pay $2,445 two years from now, $3,433 four years from now, and $1,611 five years from now. if rhe opportunity rate is 7.07 percent per year, what is the present value of the investment?
- An investment will pay $10,000 eighteen months from now. What purchase price will provide a rate of return of 7% simple interest?What is the present value of an investment that pays you $21.96 per month for 11 months if the first payment is today and the discount rate is 6.1% per month? (Round to the nearest cent)Today (t=0), you invested the starting prinipal of 1536 dollars. At the end of the first, second and third years, you will receive payments in the amount of 40%, 45% and 50% respectively of your initital investment. What is the net present value (NPV) of the investment if the minimum attractive rate of return (MARR) is 7.8%. Calculate the MARR for an NPV between $0 and $1 and draw the cash flow diagram.