4 Which alternative in the table below should be selected when the MARR = 4% per year? The life of each alternative is 10 years.Increment ConsideredA(A-DN)A Investment cost$900$157A (Annual Revenues lessCosts)IRR on A Investment CostThe IRR on A(C-B) is%. (Round to one decimal place.)11.6%CA(B-A)$500$12421.2%A(C-B)$1,200$168?A(D-C)$1,700$170?D

IRR is a rate at which NPV of the project is equal to the zero or it can be said that PV of cash…

Which alternative in the table below should be selected when the MARR = 4% per year? The life of each alternative is 10 years. Increment Considered A Investment cost A (Annual Revenues less Costs) IRR on A Investment Cost The IRR on A(C-B) is %. (Round to one decimal place.) A(A-DN) $900 $157 11.6% A(B-A) $500 $124 21.2% A(C-B) $1,200 $168 ? A(D-C) $1,700 $170 ?

Which alternative in the table below should be selected when the MARR = 4% per year? The life of each alternative is 10 years. Increment Considered A Investment cost A (Annual Revenues less Costs) IRR on A Investment Cost The IRR on A(C-B) is %. (Round to one decimal place.) A(A-DN) $900 $157 11.6% A(B-A) $500 $124 21.2% A(C-B) $1,200 $168 ? A(D-C) $1,700 $170 ?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Which alternative in the table below should be selected when the MARR = 7% per year? The life of each alternative is 10 years. Increment Considered A(A - DN) A(B-A) A(C-B) A(D-C) A Investment cost A (Annual Revenues less Costs) $700 $600 $1,100 $1,600 $155 $126 $165 $160 IRR on A Investment Cost 17.9% 16.4% ? ..... The IRR on A(C-B) is %. (Round to one decimal place.)
Which alternative in the table below should be selected when the MARR = 6% per year? The life of each alternative is 10 years. Increment Considered A(C - B) A(A-DN) A Investment cost $700 A(B-A) $600 A(D-C) $1,100 $1,700 A (Annual Revenues $143 $115 $162 $170 less Costs) IRR on A Investment Cost 15.7% 14.0% ? ? The IRR on A(C - B) is %. (Round to one decimal place.)
Investment If $5000 is invested for 6 years atinterest rate r (as a decimal), compounded annually, the future value of the investment is given byS = 5000(1 + r) 6dollars.a. Find the future value of this investment for selectedinterest rates by completing the following table. b. Graph this function for 0 <= r <= 0.20.c. Compute the future value if the rate is 10% and20%. How much more money is earned at 20%?
Which alternative in the table below should be selected when the MARR = 4% per year? The life of each alternative is 10 years. Increment Considered A(B-A) A Investment cost $500 $124 A (Annual Revenues less Costs) IRR on A Investment Cost The IRR on A(C-B) is 6.6 %. (Round to one decimal place.) The IRR on A(D-C) is %. (Round to one decimal place.) A(A-DN) $900 $157 11.6% C 21.2% A(C-B) $1,200 $168 ? A(D-C) $1,700 $170 ? D
Which alternative in the table below should be selected when the MARR = 9% per year? The life of each alternative is 10 years. Increment Considered A(A – DN) A(B- A) A(C - B) A(D - C) A Investment cost A (Annual Revenues less Costs) $900 $600 $1,000 $1,600 $160 $147 $130 $161 IRR on A Investment Cost 10.1% 17.3% ? ..... The IRR on A(C-B) is %. (Round to one decimal place.)
An investment pays $2,000 every third year for 45 years (a total of 15 payments). Your opportunity cost is 8% compounded semi-annually. The present value of this investment is: O a. $19,639.28 O b. $13,323.26 O c. $7,317.16 O d. $9,666.46 Oe. $4,762.53
Mike Derr Company expects to earn 6% per year on an investment that will pay $616,000 seven years from now. (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.) Compute the present value of this investment. Future Value Table Factor Present Value
Assume $100,000 is available for investment and MARR =10% per year. If alternative A would earn 25% per year on inveatment of 60,000 and B would be earn 20% per year on investment of 75000 the weighted average(ROR) of A
An investment pays $2,000 every third year for 45 years (a total of 15 payments). Your opportunity cost is 8% compounded semi-annually. The present value of this investment is: O a. $19,639.28 O b. $9,666.46 O c. $7,317.16 O d. $13,323.26 O e. $4,762.53
Find the future value of a five-year $106,000 investment that pays 9.25 percent and that has the following compounding periods: (Do not round intermediate calculations, round final answers to 2 decimal places, e.g. 15.25.) Value of investment after 5 years a. Quarterly $ b. Monthly $ c. Daily $ d. Continuous $
What annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual rate of return %
What annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual rate of retum

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