A small scale mining investment is expected to generate $60,000 per year in profits over the next 15 years. If these profits are invested in a mutual fund account that ears a market interest rate of 10% per year, calculate how much the fund will be worth after the 15 years in actual dollars and in real dollars Inflation is expected to average 6% per year over that period. In real dollar A. $3,256,990 B. $1,906,350 C. $795,450 D. $1,181,400 In actual dollars A. $3,256,990 B. $795,450 C. $1,506,350 D. $1,181,400 please dont provid

A small scale mining investment is expected to generate $60,000 per year in profits over the next 15 years. If these profits are invested in a mutual fund account that ears a market interest rate of 10% per year, calculate how much the fund will be worth after the 15 years in actual dollars and in real dollars Inflation is expected to average 6% per year over that period. In real dollar A. $3,256,990 B. $1,906,350 C. $795,450 D. $1,181,400 In actual dollars A. $3,256,990 B. $795,450 C. $1,506,350 D. $1,181,400 please dont provid

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The HUT is evaluating a 5 year investment projected to yield the following relevant cash flows over its 5 year life: Given that the firm employs a 12% discount rate, what is the value of each of the three criteria: NPV? Profitability Index? Payback Period? V
PRESENT AND FUTURE VALUES OF A CASH FLOW STREAM An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $550 at the end of Year 6. a. If other investments of equal risk earn 10% annually, what is its present value? Round your answer to the nearest cent. $ b. If other investments of equal risk earn 10% annually, what is its future value? Round your answer to the nearest cent. $
Question 1: Blue Bird is considering an investment of $230 000 with cash inflows of $95 000, $76 000, $71 000, $38 000 and $33 000 over the next five years respectively. Required: What is the net present value of this investment if the relevant discount rate is 12%?
Imagineering, Inc., is considering an investment in CAD-CAM compatible design software with the cash flow profile shown in the table below. Imagineering’s MARR is 18 %/year.What is the present worth of this investment (in millions)? $enter a dollar amount Carry all interim calculations to 2 decimal places and round your answer to the nearest million. The tolerance is ±0.05. EOY 0 1 2 3 4 5 6 7 Cash Flows (M$) $12 $1 $5 $2 $5 $5 $2 $5
1.You expect to receive AED 400,000 a year for the next 10 years and this amount will grow at a rate of 6% . What is the present value of the expected cash flows for the next 10 years if the interest rate is 8% per year?
The cash flows for an investment with an economic life of 5 years are as follows: k0 = -10000, k1 = k2 = k3 = k4 = 3000, k5 = k1 + 1000 = 4000. This investment can be repeated in years 5, 10, ... etc. . What is the net present value of the infinite cash flow that follows if the discount rate is 12% per annum.
c. A company is planning to invest in a project over a 5-year period, but wants to know its financial implications. It expects the cash in-flow return on the investment to steadily increase over the 5 years. Using the information below, help determine the Total Net Cash Flows, the Net Present Value and the estimated Payback Period. Note: Estimate the payback period to the nearest year. Discount Rate 12% Investment Project Initial Investment Year 1 Year 2 Year 3 Year 4 Year 5 Cash Flow $ $ $ $ $ $ Total Net Cash Flow (5,000) 800 ? 900 ? 1,500 ? 1,800 ? 3,200 NPV of investment Estimated Payback Period
A geometric gradient that increases at ? = 6% per year for 15 years is shown in the accompanying diagram. The annual interest rate is 12%. a.) What is the present equivalent value of this gradient? . b.) Draw a cash flow diagram
Help me please
Check my work The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $500,000. If the gradient increase each year, G, is $2750, determine the cash flow in year 1 at an interest rate of 6% per year. The cash flow in year 1 is $
Subject:- finance
I NEED TO SOLVE THİS USIİNG EXCEL Suppose you invest into Fund X for 15 months with a monthly interest rate of 8%. Each month you pay $260 calculate the ending value in the red shaded area. 1 Suppose you found the Ending Value. You would like to observe the Ending Value for various monthly payments which are $100, $200, $300, and $400 Create one-way data table to see the annual payments for the interest rates in green shaded area. 2 4 5 INVESTMENTS Years Left 6 Fund X Monthly Payment ($260) Interest Rate Ending Value 15 8% 7 8 (100.00) (200.00) (300.00) (400.00) 10 $ 11 $ 12 $