Solve this problem CullumberCompanyisconsidering an investment that willreturn a lump sum of $942,800, 3years from now. What amountshould Cullumber Company payfor this investment to earn a 12%return?

To determine the amount Cullumber Company should pay for the investment to earn a 12% return, we…

Answered: Cullumber Company is considering an…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...

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Similar questions

If you invest $10,000 now into a project that will yield net revenues of $1327 at the end of each year for 12 years, what is the internal rate of return (IRR) of your investment? O a 18% Оь. 10% Ос. 16% Od. 8% O e. 15%
. If you invest $10,000 now into a project that will yield net revenues of $1.327 at the end of each year for 12 years, what is the internal rate of return (IRR) of your investment? O a 18% Ob 10% O. 16% Od. 8% Oe 15%
You have an opportunity to invest $102,000 now in return for $79,700 in one year and $30,400 in two yoars If your cost of capital is 9.5%, what is the NPV of this investment? The NPV will be S (Round to the nearest cent)
What is the internal rate of return (IRR) of an investment that requires an initial investmen of $11,000 today and pays $15,400 in one year's time?
If An investment costs $23,958 and will generate cash flow of $6,000 annually for five years. The firm's cost of capital is 10 percent? a. What is the investment's internal rate return? Based on the net present rate return, should the firm makeinvestment? b.What is the investment's net present value? Based on the net present value, should the firm make the investment?
Suppose a firm will invest $500 today, $600 a year from now, $700 two years from now, $800 three years from now, and $900 four years from now. What will the future value of the project five years from now assuming the interest rate of 12%? O $3,939.08 $4,303.79 $5,398.68 $4,820.25
An investment of P100,000 is expected to yield a regular annual net income of P25,000 per year for 10 years. Determine the conventional benefit cost ratio using present worth with an interest rate of 10%? ANSWER: Blank 1 Blank 1 Add your answer
calculate net present value of this projecct
The present worth of a multiyear investment with all positive cash flows (incomes) other than the initial investment is PW = $13,000 at MARR = i%. If MARR changes to (i + 1)%, the present worth will be:
You have an opportunity to invest $110,000 now in return for $79,400 in one year and S29,500 in two years. If your cost of capital is 9.5%, what is the NPV of this investment? The NPV will be $ (Round to the nearest cent.)
You have an opportunity to invest $106 000 now in return for S00,100 in one yoar and $30 400 in two years If your cost of capital is 8 9% what is the NPV of this investment? The NPV will be S (Round tó the nearest cent)
Ivanhoe, Inc., management is expecting a new project to start paying off beginning at the end of next year. Cash flows are expected to be as follows: 8.00% $432676 $473452 Future value Present value $ 2 If Ivanhoe can reinvest these cash flows to earn a return of 8.00 percent, what is the future value of this cash flow stream at the end of 5 years? What is its present value? (Round answers to 2 decimal places, e.g. 52.75. Do not round factor values.) LA $ 5 Year $484455 $486326 $544444

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Cullumber Company is considering an investment that will return a lump sum of $942,800, 3 years from now. What amount should Cullumber Company pay for this investment to earn a 12% return?