Find the IRR of an investment having initial cash outflow of $213,000. The cash inflows during the first, second, third and fourth years are expected to be S65,200, S96,000, S73,100 and S55,400 respectively. Assume that ris 10%.
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- Suppose that annual income from a rental property is expected to start at$1,100 per year and decrease at a uniform amount of $50 each year after the first year for the 14-year expected life of the property. The investment cost is$8,600,and i is 7% per year. Is this a good investment? Assume that the investment occurs at time zero (now) and that the annual income is first received at EOY one. The present equivalent of the rental income equals $ . (Round to the nearest dollarSuppose that annual income from a rental property is expected to start at $1,350 per year and decrease at a uniform amount of $35 each year after the first year for the 15-year expected life of the property. The investment cost is $7,500, and i is 10% per year. Is this a good investment? Assume that the investment occurs at time zero (now) and that the annual income is first received at EOY one. Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year. The present equivalent of the rental income equals $ Is this a good investment? Choose the correct answer below. (Round to the nearest dollar.) O Yes O NoSuppose that annual income from a rental property is expected to start at $1,330 per year and decrease at a uniform amount of $40 each year after the first year for the 15-year expected life of the property. The investment cost is $7,000, and i is 7% per year. Is this a good investment? Assume that the investment occurs at time zero (now) and that the annual income is first received at EOY one. Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. The present equivalent of the rental income equals $. (Round to the nearest dollar.) Is this a good investment? Choose the correct answer below. Yes No
- Suppose that annual income from a rental property is expected to start at $1,270 per year and decrease at a uniform amount of $45 each year after the first year for the 16-year expected life of the property. The investment cost is $7,700, and i is 7% per year. Is this a good investment? Assume that the investment occurs at time zero (now) and that the annual income is first received at EOY one. Click the icon to view the interest and annuity table for discrete compounding when i= 7% per year. The present equivalent of the rental income equals $ (Round to the nearest dollar.)Suppose that annual income from a rental property is expected to start at $1,300 per year and decrease at a uniform amount of $60 each year after the first year for the 12-year expected life of the property. The investment cost is $8,600, and iis 8% per year. Is this a good investment? Assume that the investment occurs at time zero (now) and that the annual income is first received at EOY one. Click the icon to view the interest and annuity table for discrete compounding when i = 8% per year. The present equivalent of the rental income equals $ (Round to the nearest dollar.)You are planning for retirement 34 years from now. You plan to invest $4,200 per year for the first 7 years, $6,900 per year for the next 11 years, and $14,500 per year for the following 16 years (assume all cash flows occur at the end of each year). If you believe you will earn an effective annual rate of return of 9.7%, what will your retirement investment be worth 34 years from now?
- Find the value of APC if the C is 1123 billion and Y is 211 billionA financing company charges 1.5% every three months on a loan. Find the equivalent effective rate of interest.Group of answer choices 8.14% 7.14% 9.14% 6.14%A company predicts they will make $1,321 per year over the next 19 years if they spend $2,497 on a machine (an asset with multi-year use). If the MARR is 16.0%, how much is this investment worth per year?
- A rather wealthy man decides to arrange for his descendants to be well educated. He wants each child to have $65,000 for his or her education. He plans to set up a perpetual trust fund so that five children will receive this assistance in each generation. He estimates that generations will be spaced 25 years apart. He expects the trust to be able to obtain a 5% rate of return and the first recipients to receive the money 15 years hence. How much money should he now set aside in the trust? Kansas Public Service Company wishes to determine the capitalized worth of a new windmill at an interest rate of 9% and following costs. Purchase $725,000 Installation $143,000 Annual O & M 12,000 Overhaul 260,000 (Year 25) Expected life 40 years Salvage value 32,000 Contributed by Paul R. McCright, University of South FloridaA small company heats its building and spends $8,000 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 10% per year starting one year from now (i.e., the first cash flow is $8,800 at EOY one). Their maintenance on the gas furnace is $345 per year, and this expense is expected to increase by 15% per year starting one year from now. If the planning horizon is 15 years, what is the total annual equivalent expense for operating and maintaining the furnace? The interest rate is 18% per year.Two years ago my daughter was born. On the day she was born I put $3000 into an account for her. The account earned 4.5% annually. That rate of return on the account will be fixed until she turns 10, at which point I will transfer whatever is in that account into a new one which is expected to earn 8% per year, and then l'll leave that money in that account until her 18th birthday. I plan to take her to Italy to visit her nona when she turns 16. I expect that trip to cost $5000 and I intend to withdraw that amount from the account. How much will be left for her on her 18th birthday (within $5 of the solution below)? Note: I used equations rather than factor tables for my solution. 2791.31 2781.31 O 2771.31 O 2761.31 None of the above