As a savvy entrepreneur, you decided to invest $8,000 in a start-up tech company in 2009. Since then, your investment has grown at a rate of 6.3% each year. Write a function to express the value of your investment, I, in the tech company as a function of t, the number of years since you made the investment. If the pattern continues, when will your investment exceed $18,000? (give the year and determine if it is early, mid, or late of that year) What is the monthly growth rate of your investment? (round answer to 1 decimal place)? What is the decade growth rate of your investment? (round answer to 1 decimal place)? Blank # 1 A/ Blank # 2 Blank # 3

You are the owner of a graphic design firm that has a number of high-end clients. Your business started up last year and is financed by three angel investors. Your initial pro forma showed that you were going to be very profitable and return a maximum of $5 million to the angel investors within five-to-six years. The angel investors expect a return of 14 percent on their investment and originally invested $1 million in your startup. At this rate, the net present value (discounted cash flow of the future returns) was $3.8 million (Present Value of future discounted cash flows). Q2. After the first year, “so far so good,” you have signed on some new clients that show great potential and met the targets of your scorecard. That said, it looks like you will have to expand staff and buy some high-end equipment to satisfy the needs of the new clients. You estimate you will need an additional $2.2 million from investors to carry you through the next two years. With the new investments and…

You are thinking about investing $4,953 in your friend's landscaping business. Even though you know the investment is risky and you can't be sure, you expect your investment to be worth $5,650 next year. You notice that the rate for one-year Treasury bills is 1%. However, you feel that other investments of equal risk to your friend's landscape business offer an expected return of 10% for the year. What should you do? The present value of the return is $ (Round to the nearest cent.)

Coming Up Roses has grown into a very successful business and you have just received an offer from someone to purchase the business from you for $1.2 million.  The potential buyer has offered you $400,000 at the time of sale, $600,000 at the end of the growing season, in 6 months, and the balance, $200,000 in 1.5 years from now. What is the present value of this offer if you could invest at 6% compounding monthly?

Elite Gaming plans to develop a mobile app. Development of the app will require an investment of $800,000 immediately as well as another $800,000 two years from today. Elite expects that cash flow from the app will begin five years from today and be $1.1 million per year for three years. In other words, there will be a cash flow from the app of $1.1 million 5 years from today, $1.1 million 6 years from today and a final $1.1 million 7 years from today. What is the net present value (NPV) of this project if the cost of capital is 10%? The NPV is closest to: A. $447,977 B. $773,778 C. $651,603 D. $407,252

A. Assume that you have completed your plans and proformas for the next year of operations. The upcoming year looks promising.  What would you most likely do from the following list?  a. From your proformas project your company’s weighted average cost of capital and return on assets, and compare the two b. Take a vacation because you have been working so hard c. Purchase a new house for your personal use because the future is looking so good d. Make sure that your company’s weighted average cost of capital exceeds your company’s return on assets, if not, rework your plans and proformas   B. Assume that all sales are on account. If the average accounts receivable balance was $1,000,000 and accounts receivable turnover was 12 for the last year of operations, what was sales revenue?  a. $10,000,000 b. $15,000,000 c. $12,000,000 d. $6,000,000