Larger amounts of money invested in things like CDs (certificates of deposit) get a better rate of return. Suppose the rates of return depend on the amount invested as follows: Invested amount Rate of return 0-1,000,000 4% 1,000,000–3,000,000 5% >3,000,000 5.5% Three companies are going to form an investment partnership to pool their money. Suppose Company 1 will invest $1,800,000, company 2, $900,000, and company 3, $300,000. How should the net amount earned on the total investment be split among the three companies? Define an appropriate characteristic function. Find the core.

(Ignore income taxes in this problem.) Your Company is considering an investment that has the following data: Year 1 2 3. 4. Investment $20,000 Cash inflow $2,000 $2,000 $5,000 $4,000 $60,000 In what year does the payback period for this investment occur? O Year 2. O Year 3. Year 4. Year 5.

Choose the letter of correct answer   A firm's current assets and current liabilities are P25,000.00 and P18,000.00 respectively. How much additional funds can it borrow from banks for short term, without reducing the current ratio below 1.35 times *a. P1,000.00b. P2,000.00c. P3,000.00d. P4,000.00e. P5,000.0

A3 3b 3. We have two mutually exclusive investments with the following cash flows:                                                                                                   Year Investment A Investment B 0 –$100 –$100 1 10 50 2 30 40 3 50 30 4 70 20   b. Calculate the NPV profile for each investment, using the discount rates of 0%, 5%, 10%, 15%, 20%, and 25%. Perform this task in an Excel spreadsheet. Cautionary note: If you use the =NPV() function in Excel to calculate the NPVs, it will provide incorrect answers. The NPV() function actually calculates the present value of all cash inflows. The NPV should be calculated as =NPV(all cash inflows) – initial cash outflow.

Finance suppose you work for apple, inc. an American multinational technology company headquartered in Cupertino, California, as a financial analyst. You are provided with informaiton about three different investment oppotunities (Projects A, B, and C) that division managers believe are value-enhancing for the firm. The cash flows for each project are given below. As each project has the same risk, you may assume they all have a discount rate of 7.00% Determine The interenal rate of return of Project "C"

please colud you explain me what how you using calculator or computation to determine NPV or IRR. A firm has the following investment alternatives:   Year                       A                                           B                                    C 1                             $400                                   $---                                  $-- 2                              400                                    400                                   --- 3                              400                                     800                                  --- 4                            400                                     800                               1,800     Each investment costs $1,400, and the firm's cost of capital is 10 percent.   a. What is each investment's internal rate of return? b. Should the firm make any of these investment? c. What is each investment's net present value? d. Should the firm firm make any of these investments?

A firm has the following investment alternatives (refer to image): Each investment costs $3,000; investments B and C are mutually exclusive,and the firm’s cost of capital is 8 percent. a.) According to the internal rates of return, which investment(s) should the firm make? Why? b.) According to both the net present values and internal rates of return, which investments should the firm make? c.) If the firm could reinvest the $3,600 earned in year 1 from investment B at 10 percent, what effect would that information have on your answer to part b? Would the answer be different if the rate were 14 percent?

A)Company Z is a computer manufacturing company that is considering diversifying into financial services. This will require an investment of £100 million and this is to be raised via an equity issue. Given the following information, calculate the weighted average cost of capital (WACC) making sure that you clearly state any assumptions made: Dividend per share, d0 = 10p.The market price per share, PE = 108p cumulative div.Earnings per share, eps = 15p.Book Value of Capital Employed = £8,400,000.There are 28 million shares in issue.£30m. 17% irredeemable debt currently quoted at £120 ex int. 800,000, 8% redeemable debentures which are redeemablein 4 years’ time and have a current market price of £82.50 ex int. £5m. 7-year term loan at 5% over base.Bank base rate = 11%.Corporation tax = 30%.   B)What assumptions lie behind the use of the WACC as a discount rate in investment appraisal. C)In light of the above assumptions and the answer to part (a), is it safe for Company Z to use the…

A firm has two possible investment with the following cash inflows. Each investment cost $480, and the cost of capital is ten percent.                                     Cash Inflows Year                                   A                             B 1                                        $300                       $200 2                                        200                         200 3                                        100                         200   a. Based only on visual inspection, which investment is to be preferred and why? b. Based on each investment’s net present value, which investment(s) should the firm make? c. Based on each investment’s internal rate of return, which investment(s) should the firm make? Is this the same answer you obtained in part b? d. If the cost of capital were to increase to 14 percent, which investment(s) should the firm make?

Pls help answer this without Excel. I got this incorrect. A real estate investment has the following expected cash flows: YEARCASH FLOW0-$108,262.001$11,543.002$29,042.003$51,281.004$41,065.00 The investor wants a 6.00% return on this investment. What is the NPV of this opportunity? Answer format: Currency: Round to: 2 decimal places.