7. Consider the following table for the cash flows of an investment account:Timemm/dd/yy01/01/201504/01/201508/01/201512/31/2015Contribution-300+2,000(a) Calculate the TWRR and the DWRR of the fund.(b) Comment on the results.Fund valuebefore contribution1,0005002502,800

Time-weighted rate of return (TWRR) is a crucial metric in finance, offering a geometrically precise…

Answered: 7. Consider the following table for the…

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

See similar textbooks

Similar questions

Information on four investment proposals is given below:Investment ProposalA B C DInvestment required ........................ $(90,000) $(100,000) $(70,000) $(120,000)Present value of cash inflows ......... 126,000 138,000 105,000 160,000Net present value ............................ $ 36,000 $ 38,000 $ 35,000 $ 40,000Life of the project ............................ 5 years 7 years 6 years 6 yearsRequired:1. Compute the project profitability index for each investment proposal.2. Rank the proposals in terms of preference.
Calculate the EAR of the following investment, entered as a percentage (Example: if your answer is 0.145, enter 14.5) Year Number Cashflow 0 -11400 1 3500 2 3000 3 3100 4 2800 Your Answer:
Calculate the HPR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Period Cashflow 0 -14100 1 3300 2 3300 3 3100 4 2800
The following are a project's cash flows. What is the projects year - 110155450 cash flows - 9.70% 5. 14.660%. 8.64% 10.78% . =. 16.94% IBR? $450 $40 3 8490
2. Compute the IRR for the investment represented by the following cash flow table: Year 1 4 6. 7. Cash Flow -1200 +350 +300 +250 +200 +150 +100 +50 (in $1000's)
For an investment account, you are given the following information during calendar years 2014 and 2015 Date Fund Value Helore Activity Deposit Withderwal Jamuary 1, 2014 160 March 1.2014 175 15 une 1, 2014 170 October 1, 2014 175 December 31, 2014 Date Pund Value Before Activity Deposit Withdrawal Pamuary 1, 2015 September 1, 201S 203 10 December 31, 2015 During 2014, the dollar weighted rate of retuni equla 74. During 2015, the time-weighted rate of retum equals 10%. Delermine the value of the fund at the end of 2015, P A n A 21095 a 212.75 e 21365 D21575 E 217.45
Q10) What is the correct amount of NPV from the given details * Particulars Initial Investment Year 1 Cash flow Year 2 Cash flow Year 3 Cash flow Year 4 Cash flow Year 5 Cash flow Cost of Capital Amount (Rs) 2750 800 800 800 800 800 6%
The cash flow streams for three alternative investment A, B, C and D are: Project Co Cash Flow (Tk.) C2 Cs C 55000 C3 C4 C6 A 230000 45000 65000 45000 75000 50000 B 290000 45000 90000 35000 95000 65000 55000 C 310000 75000 55000 60000 55000 65000 45000 D 350000 77000 75000 95000 85000 65000 Determine (i) Pay Back Period, (ii) NPV if the required rate of return is 11%, and (ii) IRR for the four alternatives.
The following are the cash flows of two projects: Project B Year Project A 0 $ (235) $ (235) 115 135 115 135 115 135 115 1234O 1 2 3 4 What are the internal rates of return on projects A and B? Note: Enter your answers as a percent rounded to 2 decimal places. Project A B IRR % %
Consider the following investment project. Calculate the net future worth of this investment at 11% and determine the acceptability of the investment. Q n An 0 - $76,000 27,500 28,500 20,700 20,700 26,000 Single Payment Compound Present Equal Payment Series Sinking Present Fund Amount Worth Worth Factor Factor Factor Factor (F/P, i, N) (P/F, i, N) (A/F, i, N) (P/A, i, N) 1.1100 0.9009 1.0000 0.9009 1.2321 0.8116 0.4739 1.7125 1.3676 0.7312 0.2992 2.4437 1.5181 0.6587 0.2123 3.1024 1.6851 0.5935 0.1606 3.6959 1.8704 0.5346 0.1264 4.2305 2.0762 0.4817 0.1022 4.7122 2.3045 0.4339 0.0843 5.1461 9 2.5580 0.3909 0.0706 5.5370 10 2.8394 0.3522 0.0598 5.8892 The net future worth of this investment will be $ thousand. AWNIN 1 2 3 4 5 6 7 8 1 2 3 4 5 Compound Amount Factor (F/A, i, N) 1.0000 2.1100 3.3421 4.7097 6.2278 7.9129 9.7833 11.8594 14.1640 16.7220 Capital Recovery Factor (A/P, i, N) 1.1100 0.5839 0.4092 0.3223 0.2706 0.2364 0.2122 0.1943 0.1806 0.1698
From the following information calculate the net asset values. (Round your answers to the nearest cent.) Current market value Current liabilities Number of NAV of fund investment shares outstanding $ 5,790,000 $ 890,000 400,000 a. b. 14,280.000 $ 900,000 960.000
Consider the 4 investments shown. Which of these are simple investments? Net Cash Net Cash Net Cash Flow for Flow for Flow for Project B Project C Project D -38000 45000 -46300 32000 -18000 2500 32000 -18000 6459 -22000 -18000 78345 n Net Cash Flow for Project A 0-32000 1 30000 2 20000 3 10000 Project A Project B Project C Project D

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

7. Consider the following table for the cash flows of an investment account: Fund value before contribution Time mm/dd/yy 01/01/2015 04/01/2015 08/01/2015 12/31/2015 Contribution -300 +2,000 (a) Calculate the TWRR and the DWRR of the fund. (b) Comment on the results. 1,000 500 250 2,800