1) You are going to choose one of two investments. Both investments cost £80000, but investment A pays £35000 a year for 4 years and investment B pays £30000 a year for five years. If your required return is 13% which should you choose? a. A because it pays back sooner b. A because its IRR exceeds 13% c. A because it has a higher IRR d. B because its IRR exceeds 13% e. B because it has a higher NPV

Q: ,what is the NPV of this​ investment?

A: Net Present Value: It is a measure of profitability and shows the absolute profit or loss made from…

Q: You are deciding between two mutually exclusive investment opportunities. Both require the same…

A: Given:   Cost of capital 6.60%     Growth rate 2.30%   Year Particulars Investment A…

Q: which should you

A: Net present value and internal rate of return are the capital budgeting techniques used to evaluate…

Q: u are deciding between two mutually exclusive investment opportunities. Both require the same…

A: IRR (Internal rate of return) is the rate at which present value of cash inflows is equal to present…

Q: f you put up $1,250 in a one-year investment and get back $1,350. What rate is this investment…

A: Time period is 1 year Present Value is $1,250 Future Value is $1,350 To Find: Rate on this…

Q: You have an opportunity to invest $100,000 now in return for $79,700 in one year and $30,100 in two…

A: The net present value (NPV) is a financial metric that helps in finding out the total value of an…

Q: You have an opportunity to invest $109,000 now in return for $79,500 in one year and $29,900 in two…

A: Net Present value is the one of the capital budgeting discounting techniques which is used to…

Q: You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive…

A: Amount Investved today is $10,000 Cash flow at year 1 is $500 Cash flow at year 2 is $1,500 Cash…

Q: 1. You have an investment opportunity that requires an initial investment of GH¢5,000 today and will…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: what is its present value? Its future value?

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: You have been offered a unique investment opportunity. If you invest $9,500 today, you will receive…

A: Given: Initial investment = $9,500 Cash in flow in year 1 = $475 Cash in flow in year 2 = $1,425…

Q: Assume you can earn 9.5% per year on your investments. a. If you invest $200,000 for retirement at…

A: Annual interest rate = 9.5%

Q: You have the opportunity to make an investment that costs $1.000,000. If you make this investment…

A: YEAR CASH FLOW      0  $                                   (1,000,000.00) 1  $…

Q: You are looking at an investment that will pay you $22,995 in year 2, $43,270 in year 4 and $41,525…

A: The present worth of the investment will include the discounted value of all single payment which…

Q: Chris offers you an investmet where if ou investment where if you invest $1,000 today, he'll return…

A: The rate of return can be calculated as: R= (Maturity amount- Initial investment)/ Initial…

Q: Imagine you are investing $100,000 into a project A. MARR is 15% This investment will bring you the…

A: Incremental analysis is used to make financial decisions by determining each project or investment…

Q: An investment has a cost of $3500. The investment will have a payout at the end of the first year.…

A: Approach: Let's assume the desired minimum payout is P.We will roll out the yearly payout…

Q: An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $300…

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: You have the opportunity to make an investment that costs $1.000,000. If you make this investment…

A: The net present value of the investment can be calculated with the help of discount rate. If the…

Q: An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $400…

A: Year Payment 1 150 2 150 3 150 4 250 5 400 6 600   Interest rate = 8%

Q: f you insulate your office for $29,000, you will save $2,900 a year in heating expenses. These…

A: a. Given, Saving Amount per Year = $2,900 Investment Amount = $29,000   NPV at Cost of Capital of…

Q: You have three options to choose for an investment: (1) Pay 15,000 and you will receive P20,000…

A: We need to find the rate of return for all the three options Let r = Rate of return

Q: You have been offered an investment opportunity that pays $600 every quarter for nine years and…

A: Current value is the present value of the future payments at a given rate of return. Given:…

Q: An investor paid $58,000 for an investment. He will get $5,780 for every two years (forever). What…

A: Option C. 4.86%

Q: Alternatives A and B require investments of $10,310 and $13,400, respectively. For 5 years their…

A: Capital budgeting indicates the evaluation of the profitability of possible investments and projects…

Q: An individual decides to invest in one of two projects, A and B, which both require the same initial…

A: Here, Initial outlays of both Projects A and B = $10,000 Yields from Project A = $11,500 Number of…

Q: You are going to choose one of two investments. Both investments cost £80000, but investment A pays…

A: Net Present Value(NPV) is excess of present value(PV) of cash inflows over PV of cash outflows. IRR…

Q: You have the opportunity to make an investment that costs $1.000,000. If you make this investment…

A: Excel Spreadsheet:

Q: Assume you expect to earn 12% annually on your investment account. You already have $33,556.25 in…

A: The present value of a future cash flow is computed by dividing it by a discount factor that takes…

Q: If you invest $131,300 in a project which yields an annual return of $17,500, how many years will it…

A: Since you have asked multiple questions, we will solve the first question for you. Please answer…

Q: we have $1,000 and we are offered to put it in investments that will double this money in 8 years,…

A: Future Value is the value of current investments at a certain future date at the assumed interest…

Q: You have been approached to buy an investment which will pay you $1,000 at the end of 4 years. The…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: You are considering an investment of $ 1500 annually. The first payment is made now and the last…

A: Given: Annual investment = $1,500 Interest rate = 3% Periods = 4

Q: You have an opportunity to invest $104,000 now in return for $80,300 in one year and $30,300 in two…

A: NPV = Present Value of cash inflow - Present Value of cash outflow

Q: An investment will generate $12,000 a year for 30 years. If you can earn 12 percent on your funds…

A: Question is based on the concept of Annuity

Q: You have an opportunity to invest $104,000 now in return for $79,100 in one year and $30,100 in two…

A: Solution:- Net Present Value (NPV) means the net value in today’s terms after adjusting initial…

Q: You are deciding between two mutually exclusive investment opportunities. Both require the same…

A: Part A  IRR for Investment A = Perpetual cash flow Initial amount invested IRR for Investment A…

Q: a) What single investment made today, earning 12% annual interest, will be worth $6,000 at the end…

A: The question is related to Time value of money. The present value is calculated with the help of…

Q: Assume you can earn 8.6% per year on your investments. a. If you invest $110,000 for retirement at…

A: The major decisions that an individual considers while setting up the retirement goals are the total…

Q: You are considering a safe investment opportunity that requires a $710 investment today, and will…

A: Minimum acceptable rate of return  It  is the lowest rate of return  which a  project must be…

Q: You are deciding between two mutually exclusive investment opportunities. Both require the same…

A: The internal rate of return is a capital budgeting technique that helps in calculating a discount…

Q: You have an opportunity to invest $102,000 now in return for $80,300 in one year and $29,400 in two…

A: Given Information : Amount invested = $102,000 Return in first year = $80,300 Return in second year…

Q: Use the formulas A = P(1 + r/n)nt and A = Pert to solve this problem. You decide to invest $6000 for…

A: Amount of investment can be calculated using the following formulae: A = P(1 + r/n)nt  A = Pert…

Q: You have recently inherited a sum of $100,000. The current market rate is 5% p.a. and you are…

A: Amount inherited = $100,000 Current Market Rate = 5% Amount expected every year indefinitely = $6000…

Q: What is the most you would pay for this investment if you require a 10% return? answer in dollars…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…