7. Fuente, Inc., has identified an investment in which the followingcash flows are deposited in the years listed. If the expectedreturn is 8 percent, what is the future value of these cash flowsat Year 4? What is the future value at a expected return of 11percent? At 24 percent?YearCash Flow$1,0751,21031,34041,420

Given the cash flows and the expected returns, let's calculate the future values:At an expected…

Answered: 7. Fuente, Inc., has identified an…

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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Similar questions

What is the profitability index of an investment with cash flows in years 0 thru 2 of -11000 , 8000 and 8100 respectively, and a discount rate of 6 percent?
Compute the payback period for an investment with the following net cash flows. (Round your answer to one decimal place.)
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:
Assume that the amount of initial investment is $350,000 and the scheduled receipts are $250,000 in the end of the first year and $200,000 in the end of the second year, respectively. Consider the DCF (Discounted Cash Flows) upon the discount rate of 8 percent p.a., then answer the NPV (net present value).
For the investment shown in the following table, calculate the total return earned over the unspecified time period. Cash flow during period Beginning-of- period value End-of- period value −$10 $3,200 $2,800 The total return on the investment is __%.
Cannonier, In., has identified an investment project with the following cash flows: Year Cash Flow 1 $1,050 2 1,280 3 1,500 4 2,240 If the discount rate is 7 percent, what is the future value of these cash flows in Year 4?
For the investment shown in the following table, calculate the rate of return earned over the unspecified time period. Cash flow during period Beginning-of- period value End-of- period value $370 $42,400 $36,500 The rate of return on the investment is enter your response here%
Compute the payback perlod for an Investment with the following net cash flows. (Round your answer to one decimal place.) Net Cash Flows per Year Cumulative Net Cash Flows $ (101,000) $ (101,000) (90,900) (70,800) Year Initial investment 1. 2. 3. 5. 6. Payback period 10,100 20,100 20,100 26,640 40,100 40,100 years (50,700) (24,060) 16,040 56,140
7. An investment is expected to produce the cash flows of $15,000, $13,000, and $18,000 at the end of the next three years. If the required rate of return is 17.5%, the present value of this investment is closest to: A. $31,223. B. $32,648. C. $33,277. 8. Given an 8.5% discount rate, an asset that generates cash flows of $100 in Year 1, -$200 in Year 2, $-100 in Year 3, and is then sold for $1,500 at the end of Year 4, has a present value of: A. $906.35. B. $926.35. C. $1,024.22. Please provide an accurate answer.
An investment costs $465 and is expected to produce cash flows of $100 at theend of Year 1, $200 at the end of Year 2, and $300 at the end of Year 3. What is theexpected rate of return on this investment? (11.71%)
Cannonier, Inc., has identified an investment project with the following cash flows: Year Cash Flow 1 $1,050 1,280 3 1,500 4 2,240 What is the future value at a discount rate of 13 percent?
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