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can you explain how the numbers on the right (.307,.192,.50) were found?
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- What is the expected return of the following portfolio of investments, Investment r Amount Invested DEF 4% $30,000 JKL 24 25,000 TUV 14 45,000ch A project with an initial investment of $88000 and a profitability index of 1.239 also has an internal rate of return of 12%. The present value of net cash flows is O $71025. O $98560. O $88000. O $109032. Save for Later O Et V B 21 E 7 Attempts: 0 of 1 used Submit Answer F12Investment Perlod 1 2 3 4 5 $(1,000) $100 264 A $100 $100 $100 $1,100 в (1,000) 264 264 264 264 (1,000) 1,611 1. Compute the net present value for each of the following cash flow sequences. Assume a cost of money of 10 percent. 3. Compute the payback for each of the cash flows in problem 1. If the maximum acceptable payback period is four years, which (if any) of the cash flows would be accepted as a desirable investment? 4. Assume a cost of money of 5 percent. Compute the net present values of the cash flows of problem 1. 5. Assume a cost of money of 15 percent. Compute the net present values of the cash flows of problem 1. Compare with the results obtained from problems 1 and 4. 6. The Arrow Company is considering the purchase of equipment that will return cash flows as follows: End of period Cash flows $5,000 2 3 3,000 2,000 1,000 500 5 Assume a cost of money of 10 percent. What is the maximum amount the company could pay for the machine and still be financially no worse off than if…
- FV $1,000 PMT $30 N 12 PV -$980 what is the yield to maturity rate? use a financial calculatorModule 02 Written Assiqnment Application of Future Value and Present Value.xlsx - OpenOffice Calc File Edit View Insert Format Iools Data Window Help ABC 《 的, ABC Verdana 10 В I U 三 開 % 0 □ A B G H I 1. Assume an investment of $2,000 today. Calculate the FV of the investment according to eac 6. 7 a. 6 percent compounded annually 8 9. Rate 6% 10 Nper PMT 12 11 12 PV $2,000.00 $0.00 13 FV 14 15 b. 8 percent compounded annually 16 17 Rate 8% 18 Nper 12 19 PMT 20 PV $2,000.00 21 FV 22 23 c. 10 percent compounded annually 24 25 Rate 10% 26 Nper 12 27 PMT 28 PV $2,000.00 29 FV 30 31 d. 10 percent compounded semiannually 32 Rate K Future Value Present Value 33 10% STD Sheet 1/2 PageStyle Future Value11:52 Investment Appraisal (Year 2 Column 2... 6. Discount Factor (5%) Year 0 -450,000 150,000 1.00 Year 1 0.952 Year 2 180,000 0.907 Year 3 250,000 0.864 Year 4 200,000 0.823 Year 5 200,000 0.784 What is the NPV ? £530,000 £298,595 £393,460 7. Based on NPV which project would you ассept? Net Cash F Net Cash F Net Cash F Project 1 (110,000) (105,000) Project 3 (116,000) Project 2 Year 0 ... Activity Chat Teams Assignments More
- A B 7. What is the expected NPV in C5? Scenario Probabilities NPV 1 2 Worst Case 3 Base Case 4 Best Case 0.2 (52,125) 0.6 27,652 0.2 107,429 5 Expected NPV ? 8. You wish to create a Data Table that A B D E calculates the NPV with various initial Year Cash Flow IO 2,547.98 outlays in D1:E6. Which cell should be entered into the Data Table dialog box, 2 -5000 -7000 3 1 1000 -6000 and in which edit box? Hint: pg. 400 of 4 2000 -5000 textbook and ch.13 Worksheet has a 5 3 3000 -4000 sample 6 4 4000 -3000 7 WACC 10% a) B7, Row input b) B7, Column input c) B2, Row input d) B2, Column input e) E1, Column input Data Table 10 Row input cell: 11 Column input cell: 12 OK Cancel 13 14QUESTION 40 The potential losses are sorted in the following table. The absolute VaR is £8 Million. What is the relative expected shortfall from the mean? Sorted returns Returns (£ Million) -12 -10 -8 -6 -4 -3 -1.5 OA. 4.64 B.-11 C.-6.36 D.2.64Value UI T IUF WHich PW(1)c PW (1)p? 10. Investments A and B have the net cash flows given. End of year 1 4. $ 75 $ 75 $150 А -$250 -$250 $175 $ 75 $150 $ 75 В $150 Compare the present worth of A with the present worth of B for an in- terest rate of 5%. Which has the higher value? Answer: A If the interest rate is 15%, which has the higher value? Answer: B а. b. On the same axis, graph the present worth of each investment as a func- tion of the interest rate. с.
- MC Qu. 9 What amount of cash would result at the end ...What amount of cash would result at the end of one year, if $16,000 is invested today and the rate of return is 8%? (Do not round your PV factors.)a-$16,000b-$17,120c-$17,280d-$14,720ReferencesMultiple ChoiceMC Qu. 9 What amount of cash would result at the end ... Please don't provide answer in image format thank youA3 4b We have two mutually exclusive investments with the following cash flows: Year Investment A Investment B 0 –$100 –$100 1 10 50 2 30 40 3 50 30 4 70 20 b. Calculate the NPV profile for each investment, using the discount rates of 0%, 5%, 10%, 15%, 20%, and 25%. Perform this task in an Excel spreadsheet. Cautionary note: If you use the =NPV() function in Excel to calculate the NPVs, it will provide incorrect answers. The NPV() function actually calculates the present value of all cash inflows. The NPV should be calculated as =NPV(all cash inflows) – initial cash outflow.11:52 Investment Appraisal (Year 2 Column 2... 35% 4. An investment has the following cash flows. What is the ARR? Year 0 -90,000 Year 1 45,000 10,000 Year 2 Year 3 30,000 30,000 Year 4 6% 7% 9% 5. Which of the following investments would you choose based on payback? Project 3 years 6 months 5 years 10 months A В ... Activity Chat Teams Assignments More