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- You are set to receive $2,190 annually (at the end of each year) forever with returns of 12.40% for the first 6 years and 4.30% thereafter. What is the current value of this investment? a. $17,661 b. $34,160 C. $28,389 d. $50,930 e. $25,257 xAn asset is expected to pay a cash flow of $10 every 6 months in perpetuity with the first cash flow occuring in one years' time.Similar investment opportunities have a required return of 8% compounded quarterly.What should be the price of the asset in exacly 2^1/2 years' time?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 of $80,000 yields a net income of $10,000 per year. How many years does it toketo recover the initial investment ot nominol interest of 6.5% compounded quarterly? You canuse the spreadsheet functions to solve this question or trial and error procedurea. 16 b.12c.15d.14 e.11You have purchased a property for $950,000 and expect its value to grow at 3 percent compounded annually for 10 years. You plan to sell it at that time hoping to capture your value estimate. In addition, the property is expected to provide a monthly cash flow of $4,000. You expect the monthly cash flow to remain constant over time. What is the expected annual rate of return on this investment given your expectations about its future cash flows?Which of the following investment options will maximize your future wealth at the end of 20 years? Assume any funds that remain invested will earn a nominal rate of 12% compounded monthly Select one: a. deposit $80 at the end of each month for the first 10 years b. deposit a lump sum in the amount of $15,000 at the end of year 10 c. deposit $5000 now d. deposit $50 at the end of each month for 20 years
- At the end of each year for the next 18 years you will receive cash flow of $3700 the initial investment is $25,200 today what rate of return are you expecting from this investment?Use the graph below to answer the following questions. What is the approximate final value of $10,000 invested for 40 years at 8% APR compounded annually? How many times larger is the final value of $10,000 invested for 50 years at 8% APR compounded annually versus 5% APR compounded annually?Tom Thompson expects to invest $6,000 at 10% and, at the end of a certain period, receive $33,359. How many years will it be before Thompson receives the payment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value Present Value Table Factor Years years
- The value of business, currently priced at 100000 Ria. is expected to increase by 20% a year. After how many years will it be worth 1 million Rial Find the value in 10 years time Please answer all parts of the question.An investment offers $3,850 per year for 15 years, with the first payment occurring one year from now. If the required return is 6 percent, what is the value of the investment? What would the value be if the payments occurred for 40 years? For 75 years? Forever? Payment per year $3,850 Number of years 15 Required rate of return 6% Number of years 40 Number of years 75 Value today for 15 years of payments Value today for 40 years of payments Value today for 75 years of payments Value today of perpetuityPlease use excel and explain how you solved it step by step thank you What is the present value of an investment of $5,000 per year for 8 years with 10% interest? I ll rate
