Alternative Initial Investment Annual Return Salvage Value M $8,000 $3,200 $1,000 $15,000 $4,750 $1,750 $10,000 $3,070 $1,100 P $20,000 $5,950 $2,000 Q $19,000 $5,150 $2,100 R $12,000 $4,250 $1,200

An investment offers the following: a series of $1000 annual payments, starting one year from now, for a total of 12 payments. If your opportunity cost (as an EAR) is 5%, what is the investment worth to you today?   Group of answer choices $11,079.20 $9,214.56 $10,103.26 $8,863.25 $10,241.19 Give typing answer with explanation and conclusion

An investment advisor has recommended a R50,000 portfolio containing assets R, J, and K; R25,000 will be invested in asset R, with an expected annual return of 12 percent; R10,000 will be invested in asset J, with an expected annual return of 18 percent; and R15,000 will be invested in asset K, with an expected annual return of 8 percent. What is the expected annual return of this portfolio? What is the correct answer?    A. 12.01%  B. 12.00%  C. 11.98%  D. 12.93%

Assume you invest $5,100 today in an investment that promises to return $6,928 in exactly 10 years. a. Use the​ present-value technique to estimate the IRR on this investment. b. If a minimum annual return of 9% is​ required, would you recommend this​ investment?       #69 Part 1 a. The IRR of the investment is enter your response here​%. ​(Round to the nearest whole​ percent.) Part 2 b. If a minimum return of 9% is​ required, would you recommend this​ investment?  ​(Select the best choice​ below.)     A. ​No, because this investment yields less than the minimum required return of 9%.   B. ​Yes, because a minimum required return of 9% does not compensate for an investment that lasts longer than one year.   C. ​No, because a minimum required return of 9% is an arbitrary choice for an investment of this risk level.   D. ​Yes, because this investment yields more than the minimum required return of 9%

Compare alternatives A and B with the present worth method if the MARR is 14% per year. Which one would you recommend? Assume repeatability and a study period of 16 years. Capital Investment Operating Costs The PW of Alternative A is $ - 108236. (Round to the nearest dollar.) The PW of Alternative B is $ -95429. (Round to the nearest dollar.) Alternative B should be selected. A $55,000 $6,000 at end of year 1 and increasing by $600 per year thereafter $6,000 every 4 years 16 years $12,000 if just overhauled Overhaul Costs Life Salvage Value Click the icon to view the interest and annuity table for discrete compounding when the MARR is 14% per year. B $15,000 $12,000 at end of year 1 and increasing by $1,200 per year thereafter None 8 years negligible D

An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $400 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 4% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent. Present value: $ Future value: $

An investment will pay $21,600 at the end of the first year, $31,600 at the end of the second year, and $51,600 at the end of the third year. (FV of $1. PV of $1. EVA of $1, and PVA of $1) Note: Use the appropriate factor(s) from the tables provided. Required: Determine the present value of this investment using a 9 percent annual interest rate. Note: Round your intermediate calculations and final answer to nearest whole dollar. Present value of investment

4. You have to select only one of the following projects (ie. They are mutually exclusive.) Project #1 is 4 years long and has an NPV of $140,000. Project #2 is 6 years long and has an NPV of $180,000. The required rate of return is 10%. Which project should you take using the EAA approach?

Trestle Corporation wants to purchase a new finishing machine. They currently have an old machine, which is operable for five more years and is expected to have a zero-disposal value at the end of five years. If the company buys the new machine, the old machine will be sold now for $95,000 (book value is $75,000). The new machine will cost $635,000 and will be depreciated for tax purposes on a straight-line basis over its useful life of 5 years. The new machine will not have a salvage value and will not be sold after its useful life. An additional cash investment in working capital of $25,000 will be required if the new machine is purchased. The investment is expected to net $80,000 in before tax cash inflows during the first year of operation and $235,000 each additional year of use. These cash flows do not include depreciation and are recognized at the end of each year. The working capital investment will not be recovered at the end of the asset's life. The company's tax rate is 32%.

You are offered an investment with returns of $ 2,213 in year 1, $ 4,670 in year 2, and $ 3,184 in year 3. The investment will cost you $ 6,506 today. If the appropriate Cost of Capital is 7.6 %, what is the Net present Value of the investment?