(RR calculation) Your investment advisor has offered you an investment that will provide you with a single cash flow of $10,000 at the end of 20 years if you make an annual payment of $200 per year in the interim period. Specifically, the annual payments begin immediately and extend through the end of year 19. You then receive the $10,000 at the end of year 20. Find the internal rate of retum this investment This investments internal rate of retum is % (Round to two decimal places)
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- May I ask for an explanation of the question for a better understanding. Thank you! Which investment will you choose from the following investment opportunities: a. A one-year investment that pays 12%, compounding annually. b. A one-year investment that pays 12%, compounding monthly. c. All the choices will provide the same future value. d. A one-year investment that pays 12%, compounding quarterly.Your investment advisor has offered you an investment that will provide you with a single cash flow of $ 10,000 at the end of 20 years if you pay premiums of $ 200 per year in the interim period. Speciifcally, the annual premiums will begin immediately and extend through the end of year 19. You will then receive the $ 10,000 at the end of year 20. Find the IRR for this investment a. 8.00% b. 7.10% c. 8.10% d. 9.10%Which of the following investments will have the highest future value atthe end of 10 years? Assume that the effective annual rate for allinvestments is the same. a. Investment E pays $250 at the end of every year for the next 10 years (a total of 10 payments). b. Investment B pays $125 at the end of every 6-month period for the next 10 years (a total of 20 payments). c. Investment C pays $125 at the beginning of every 6-month period for the next 10 years (a total of 20 payments). d. Investment D pays $2,500 at the end of 10 years (a total of one payment). e. Investment A pays $250 at the beginning of every year for the next10 years (a total of 10 payments).
- An investment will pay $150 at the end of each of the next 3 years, $300 at the end of Year 4, $600 at the end of Year 5, and incur a $500 cost at the end of Year 6. If other investments of equal risk earn 6.7% annually, what is this investment’s present value? Its future value?Accounting 2) You set up a 45-year investment plan with the intention of amassing 1,500,000 at the end of the 45 years. Assume an average return of 7% per year. a) Set up an IVP that describes the progress of the 45-year investment plan. (You will be putting in a fixed payment each month) b) What should be your monthly payment over the 45-years to ensure your investment plan reaches 1,500,000? c) What should your monthly payment be if you were to start an investment plan reaching the same $1,500,000 over 20 years?You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would increase the calculated value of the investment? Group of answer choices The cash flows are in the form of a deferred annuity, and they total to $100,000. You learn that the annuity lasts for 10 years rather than 5 years, hence that each payment is for $10,000 rather than for $20,000. The discount rate decreases. The riskiness of the investment's cash flows increases. The total amount of cash flows remains the same, but more of the cash flows are received in the later years and less are received in the earlier years. The discount rate increases.
- This problem demonstrates the dependence of an annuity's future value on the size of the periodic payment. Suppose a fixed amount will be invested at the end of each year and that the invested funds will earn 5.3% compounded annually. What will be the future value of the investments after 15 years if the periodic investment is: (Do not round intermediate calculations and round your final answers to 2 decimal places.) Investment Future Value a. $2,300 per year $ b. S3, 300 per year $ c. S4, 300 per year $An investment pays $200 at the end of Year I. $250 at the beginning* of Year 2. $387 at the end of Year 4. and $500 at the beginning of Year 6. If other investments of equal Mk earn 7.5% annually. what will be this investments present value and future value?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?
- 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.What would you pay for an investment that pays you $34000 at the beginning of each year for the next ten years? Assume that the relevant interest rate for this type of investment is 11%. $211024. $222260. $200231. $234235.Number of years to provide a given return In the information given in following case, determine the number of years that the given oridinary annuity cash flows must continue in order to provide the rate of return on the initial amount Initial amount $185,500 Annual cash flow $71,963 Rate of return 14% The number of investment years, n, is enter your response here years.