Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Find the Net Present Value (NPV) for Oman Computer
company if the initial investment is 15000 OMR and
the cash Inflows are as follows: Year 1 =2509 OMR;
Year 2 =5590 OMR; Year 3=7500 OMR and Year
4=9200 OMR. Use discount rate as 2.02%.
Select one:
O a. None of the options
O b. 8936.11 OMR
O c. 8574.51 OMR
O d. 8234441 OMR
O e. 8386.11 OMR
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- Mearrow_forwardQuestion 1: Blue Bird is considering an investment of $230 000 with cash inflows of $95 000, $76 000, $71 000, $38 000 and $33 000 over the next five years respectively. Required: What is the net present value of this investment if the relevant discount rate is 12%?arrow_forwardBaghibenarrow_forward
- A company is considering two mutually exclusive investments with a discount rate of 10%.The cash flows of the projects over time follows: Time Project A Project B 0 - RM300,000 - RM405,000 1 - RM387,000 RM134,000 2 - RM193,000 RM134,000 3 - RM100,000 RM134,000 4 RM600,000 RM134,000 5 RM600,000 RM134,000 6 RM850,000 RM134,000 7 - RM180,000 RM0 Net Present value given : Time Project A Project B Project A Project B 0 -300,000 -405,000 1.0000 (300,000.00) (405,000.00) 1 -387,000 134,000 0.9091 (351,818.18) 121,818.18 2 -193,000 134,000 0.8264 (159,504.13) 110,743.80 3 -100,000 134,000 0.7513 (75,131.48) 100,676.18 4 600,000 134,000 0.6830 409,808.07 91,523.80 5 600,000 134,000 0.6209 372,552.79 83,203.46 6 850,000 134,000 0.5645 479,802.84 75,639.51 7 -180,000 0 0.5132…arrow_forwardMendez Company has identified an investment project with the following cash flows. Year Cash Flow 1 2 3 $780 1,050 1,310 1,425 a. If the discount rate is 8 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 25 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 8% b. Present value at 17% c. Present value at 25%arrow_forwardYou are evaluating five different investments, all of which involve an upfront outlay of cash. Each investment will provide a single cash payment back to you in the future. Details of each investment appears here:. Calculate the IRR of each investment. State your answer to the nearest basis point (i.e., the nearest 1/100th of 1%, such as 3.76%). The yield for investment A is %. (Round to two decimal places.) Initial Future Investment Investment Value Im A $1,900 $4,029 B $9,600 $13,121 C $500 D $3,200 E $5,900 Data table $1,759 $4,139 $9,079 End of Year 11 9 18 3 12 I Xarrow_forward
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