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- Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)An investment of $74,000 yields a net annual income of $22,000 for 6 years. What is the internal rate of return (IRR) for this investment? O a. 19.54% O b. 24.43% O c. 13.03% O d. 29.31% O e. 15.63%a. Find the FV of $1,000 invested to earn 12% after 6 years. Round your answer to the nearest cent. $4 b. What is the investment's FV at rates of 0%, 6%, and 20% after 0, 1, 2, 3, 4, and 5 years? Round your answers to the nearest cent. Interest Rate Year 0% 6% 20% $4 $ $ 2$ $ $ 2 $ 2$ $ 2$ $ 4 24 24 $ 2$ 24 Choose the correct graph of future value as a function of time and rate. Note: blue line is for 0%, orange line is for 6%, and grey line is for 20%. The correct graph is
- An investor is presented with an investment proposal which produces a continuous income stream of 10%, compounded continuously for 10 years. The rate of flow of the income from the investment is f(t) = 9000e0.04r. 1) Determine the future value of the investment. 2) Compute the interest earned.Current Attempt in Progress a $100,000 investment yields an annual return of $11,730.82 the first year; thereafter, annual returns increase at an annual rate of 6%. Based on a MARR of 8%, what is the discounted payback period for the investment? Click here to access the TVM Factor Table calculator. n = years Round entry to a whole number.j. Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 10%. Payment $100 $300 $500 Year 1 2 3 Round your answers to the nearest cent. PV of investment: $ FV of investment: $
- An investor receives $1,050 in 6 months in return for an investment of $1,000 now. What is the equivalent annual nominal return on this investment with continuous compounding? a. 10.00% b. 4.88% c. 9.76%Your goal is to be able to withdraw $4.800 for each of the next seven years beginning one year from today The return on the investment is expected to be 12%. The amount that needs to be invested today is closest to (FMof $1 PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.) Multiple Cholce $33,600. $21,906. $38.300. $29,946.Find the NPV: Financial Calculator: Investment that pays $4,880 at the end of each of the next 3 years. Initial cost of $1,220 and a cost at the end of the 2nd year of $6,100. Interest rate is 1.7%. My numbers in the FC are: N: 3 I/Y: 1.7% PV: CPT; Initial Investment cost of -7,320 PMT: 4,880 each year (3x) CF1/CF2/CF3 FV: 0 My benefit was $14,155.99 - my cost of $7,320.00 = $6,835.99. My answer is incorrect. What am i doing wrong?
- An investment of $80,000 yields a net income of $10,000 per year. How many years does it toketo recover the initial investment ot nominol interest of 6.5% compounded quarterly? You canuse the spreadsheet functions to solve this question or trial and error procedurea. 16 b.12c.15d.14 e.11Determine the effective annual yield for each investment. Then select the better investment. 2.98% compounded semiannually; 2.97% compounded monthly Click the icon to view some finance formulas. Select the correct choice below and fill in the answer boxes within your choice. (Round to the nearest hundredth as needed.) % and the O A. The second investment, 2.97% compounded monthly, is the better investment because the effective annual yield for the first investment is effective annual yield for a 2.97% compounded monthly investment is %. O B. The first investment, 2.98% compounded semiannually, is the better investment because the effective annual yield for the first investment is effective annual yield for a 2.97% compounded monthly investment is %. % and theAn 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