Calculate the rate of return for an investment that meets the criteria listed below: initial cost project life salvage value annual receipts annual disbursements O 24.5% O 20.6% O 19.6% O 22.9% $20,000 10 years $5000 $7500 $3000
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do not use excel. manual computation with formula
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- Year Investment A 2016 $400.000 2017 $400.000 2018 $400.000 2019 $400.000 2020 $400.000 Investment B $100.000 $100.000 $100.000 $1.000.000 $1.000.000 calculate the Npv of both projectWhat is Project A's Modified Internal Rate of Return with a WACC of 7.75%? YEAR 0 1 2 3 4 CASH FLOWS Project A -$1050 675 650 Project B -$1050 360 360 360 360О $18.42 $16.44 Using the technique of equivalent annual cash flows and a discount rate of 7 percent, what is the value of the following project? Year CF 0 1 2 3 4 -34 20 21 22 16 Multiple Choice $9.80 $9.25
- Calculate the internal rates of return of the following investment: Net investment -$1,100 Year 0 Net cash flows +6,500 Year 1 -11,400 Year 2 +6,000 Year 3 Round your answers to the nearest whole number and enter them in ascending order. IRR1: 0% IRR2: % IRR3: %Spreadsheet Link What is the IRR of the following project?Cash FlowYear0 -32,0001. 9,0002. 10,0003. 15,0004. 7,800 1). 10.8% 2). 11.2% 3). 11.7%4). 12.0% 5). 12.3%Exhibit 2.3A Examp'e Comparing Two Projects Using the Payback Method Project A Project B Formulas Investment Annual saving 5750,000 5215,000 $250.000 580,000 Project A Payback 07/D8) Project B Payback (7/P8) Payback Period" Rate of Return"* Project A: Rate of Return (06/D7) Project D. Rate of Return (F8/P7) Accept/Reject Exclanetion Project A Accept/Reject Accept is Payback<5 Years and Rate of Return 15% Project B * Note: Parbnck does not use she time valce of money ** Note: Rate of returnis reciprocalof Fayback
- Consider the following cash flows for two mutually exclusive capital investment projects. The required rate of return is 16%. Use this information for the next 3 questions. Year Project A Cash Flow Project B Cash Flow ($50,000) ($20,000) 15,000 6,000 15,000 6,000 3 15,000 6,000 4 13,500 5,400 13,500 5,400 6,750 5,400Following is information on two alternative investments being considered by Jolee Company. The company requires a 8% return from its investments. (PV of $1, FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 Required A Required B Project A $(183,325) a. For each alternative project compute the net present value. b. For each alternative project compute the profitability index. If the company can only select one project, which should it choose? Initial Investment $ Chart Values are Based on: i=P % 45,000 58,000 78,295 87,400 60,000 Complete this question by entering your answers in the tabs below. For each alternative project compute the net present value. Project A 183,325 Project B $(143,960)A Project with a net investment of $10,000 and net cash flows of $5,000, $4,000, $3,000, $2,000, $1,000 for years 1 through 5 has an internal rate of return of __________ percent. a. 20.27 b. 19.5 c. 18.45 d. 23.5
- The table bellow shows the cash flow for an engineering project, if the reinvestment rate of return e is 6% per year, the external rate of rate (EER) is : EOY Cash flow $ 13000 14 -2000 5 to 10 8000 Select one: O a 14.3% O b. 17.6% O G 7% O d. 20.1% O e. 10%Module 02 Written Assiqnment Application of Future Value and Present Value.xlsx - OpenOffice Calc File Edit View Insert Format Iools Data Window Help ABC 《 的, ABC Verdana 10 В I U 三 開 % 0 □ A B G H I 1. Assume an investment of $2,000 today. Calculate the FV of the investment according to eac 6. 7 a. 6 percent compounded annually 8 9. Rate 6% 10 Nper PMT 12 11 12 PV $2,000.00 $0.00 13 FV 14 15 b. 8 percent compounded annually 16 17 Rate 8% 18 Nper 12 19 PMT 20 PV $2,000.00 21 FV 22 23 c. 10 percent compounded annually 24 25 Rate 10% 26 Nper 12 27 PMT 28 PV $2,000.00 29 FV 30 31 d. 10 percent compounded semiannually 32 Rate K Future Value Present Value 33 10% STD Sheet 1/2 PageStyle Future ValueYou have been given the following return data, on three assets-A, B, and C-over the period 2021-2024. Using these assets, you have isolated three investment alternatives: a. Calculate the average portfolio return for each of the three alternatives. b. Calculate the standard deviation of returns for each of the three alternatives. c. On the basis of your findings in parts a and b, which of the three investment alternatives would you recommend? Why? OCTOB a. Calculate the portfolio return over the 4-year period for each of the 3 alternatives. Alternative 1: 7.00% (Round to two decimal places.) Alternative 2: 7.00% (Round to two decimal places) Alternative 3: 7.00% (Round to two decimal places.) b. Calculate the standard deviation of returns over the 4-year period for each of the 3 alternatives. Alternative 1: % (Round to three decimal places)