An investor injects $ 40,000 in a new project. After investing an additional funds of $2000 in the first year, he receives a net benefit of $15000. In the second year the investment is $3000 and the net benefit amounts to $20,000. Following third and fourth year investments and benefits were 4,000 for a benefit of 19000 and 1,000 for a benefit of 16,000. Given that the discount rate is 12%, determine the profitability index.

An investor deposits $1000 at the beginning of each year for five years in a fund earning 5% effective. The interest from this fund can be reinvested at only 4% effective. Show that the total accumulated value at the end of ten years is 1250($111.04 - $1.04 −1).

Bill Williams has the opportunity to invest in project A that costs $6,900today and promises to pay $2,100​, $2,400​, $2,400​, $2,000 and $1,800over the next 5 years. ​ Or, Bill can invest $6,900 in project B that promises to pay $1,500​, $1,500​, $1,500​, $3,600 and $4,000 over the next 5 years.   ​(​Hint: For mixed stream cash​ inflows, calculate cumulative cash inflows on a​ year-to-year basis until the initial investment is recovered.​)   a. How long will it take for Bill to recoup his initial investment in project A?   b. How long will it take for Bill to recoup his initial investment in project​ B?   c. Using the payback​ period, which project should Bill​ choose?   d. Do you see any problems with his​ choice?

An investor is setting up a fund which requires 18 years of contributions. The investor pays £200 per month for 15 years. After 15 years, the payments increase by £10 for the subsequent 3 years. All payments are made in arrears, i.e at the end of the period. The effective annual rate i = 2%. What is the value of the fund after 18 years? £ 数字 Enter an answer correct to 2 decimal places.