A $141,000 Initial Investment will generate the following present values of net cash flows. What is the break-even time for this Investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Round "Break-even time" answer to 1 decimal place. Year Initial investment 1. 2. 3. 4. 5. Break-even time Cumulative Present value of Present value of Net Cash Flows Net Cash Flows $ (141,000) $ (141,000) 45,455 (95,545) 41,320 (54,225) 32,629 (21,596) 34,150 12,554 31,045 43,599 years

A $141,000 Initial Investment will generate the following present values of net cash flows. What is the break-even time for this Investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Round "Break-even time" answer to 1 decimal place. Year Initial investment 1. 2. 3. 4. 5. Break-even time Cumulative Present value of Present value of Net Cash Flows Net Cash Flows $ (141,000) $ (141,000) 45,455 (95,545) 41,320 (54,225) 32,629 (21,596) 34,150 12,554 31,045 43,599 years

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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A $169,700 initial investment will generate the following present values of net cash flows. What is the break-even time for this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Round "Break-even time" answer to 1 decimal place. Year Initial investment 1. 2. 3. 4. 5. Break-even time Present Value of Net Cash Flows. $ (169,700) 51,818 47,105 37,888 38,931 35,391 Cumulative Present Value of Net Cash Flows $ (169,700) (117,882) (70,777) (32,889) years 6,042 41,433
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The present worth of a multiyear investment with all positive cash flows (incomes) other than the initial investment is PW = $11,000 at MARR = i%. If MARR changes to (i+1)%, the present worth will be: O Greater than $11,000. O Cannot determine without the cash flow profile and a value for i. O Less than $11,000. O Equal to $11,000.
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