Invest $7,000 today, receive $2,000 in year 1, $4,000 in year 2, and $8,000 in year 3. o Calculate the Net Present Value assuming a hurdle rate of 10% o Calculate the internal rate of return.
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- If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%Your investment will pay you the following cash flow stream: YEAR | CASH FLOW 1 |200 2 10 3 100 4 100 If your required rate of return is 12%, what is the value (i. e., present value ) of this investment at time 0? What is the future value at the end of year 7? Please explain in steps to input on BA II Plus calculatord. Determine the minimum annual net cash flow necessary to generate a positive net present value, assuming a desired rate of return of 12%. Round to the nearest dollar.Annual Net Cash Flow fill in the blank 1 of 1$
- A real estate investment has the following expected cash flows: Year Cash Flows 1 $15,000 2 14,000 3 19,000 4 21,000 The discount rate is 6 percent. What is the investment’s present value? Round your answer to 2 decimal places; for example 2345.25.A real estate investment has the following expected cash flows: Year Cash Flows 1 $14,000 2 19,000 3 19,000 4 25,000 The discount rate is 3 percent. What is the investment’s present value? Round your answer to 2 decimal placesSolve the following problem using the present worth analysis for an interest rate of 8%. Alt. A Alt. B Alt. B Initial cost $1,700 $2,100$3,750 Benefit/year 1,000 |1,000 1,000 Life in years|2 3 6
- Assume an investment is priced today at $5,000 and has the following income stream: Year Cash Flow 1 123 2 3 4 $ 1,000 - 2,000 3,000 3,000 Would an investor with a required rate of return of 15 percent be wise to invest at a price of $5,000? Multiple Choice No, because the investment has a net present value of - $1,139.15. No, because the investment has a net present value of - $1,954.91. Yes, because the investment has a net present value of $1,069.66. Yes, because the investment has a net present value of $1,954.91. An investor would be indifferent between purchasing and not purchasing the above investment at the stated price.a) How many possible rate of returns b) If the reinvestment ratec 15%, find the composite rate of return. Year 1 Net Cash Flow -10,000 +15,000 +5,000 -7,000Solve for the value of X in the accompanying table, so that the cash flow A is equivalent to the cash flow B. Let i 8% per year. Cash flow A Cash flow B Year Cash flow, $ Year Cash flow, S 2. 8,000 2. 3. 3. 4. -2X 8,000 3X Select one: O a. 8381.6 O b. 9009.4 O c.7126.0 O d. 9637.2 O e. 7753.8 4.
- a)Calculate the internal rate of retum (IRR) of the following cash flow. Determine if this is a good investment for a MARR of 3% per year. b)Calculatethe extemalrate of return (ERR) of the following cash flow by assuming a MARR of 3% per year. Determine if this is a good investment. Cash Flow, $ -100,000 -10,000 -1,000 13,000 13,000 13,000 Cash Flow, $ |16,000 |16,000 16,000 16,000 16,000 16,000 Year 6 Year 1 2 3 4 5 10 11Determine the present value P you must invest to have the future value A at simple interest rate r after time t. A = $19,000, r = 11.5%, t = 4 years The present value that must be invested to get $19,000 after 4 years at an interest rate of 11.5% is $. (Round up to the nearest cent.)Calculate the internal rates of return of the following investment: Net investment -$1,000 Year 0 Net cash flows +6,000 Year 1 -11,000 Year 2 +6,000 Year 3 Round your answers to the nearest whole number and enter them in ascending order. IRR1: % IRR2: % IRR3: %