Solve the following rate of return problems. a. An investment of $1,700 today returns $64,000 in 50 years. What is the internal rate of return on this investment? b. An investment costs $850,000 today and promises a single payment of $12.9 million in 22 years. What is the promised rate of return, IRR, on this investment? c. What return do you earn if you pay $24,410 for a stream of $4,000 payments lasting 10 years? Note: Round your answers to 2 decimal places. 7.53 % a. IRR b. IRR c. IRR %

If you invest $73,300 in a project which yields an annual return of $13,500, how many years will it take to recover your investment if the annual interest rate is 4.5%? a 7 b 9 c. 5 d 8 e. 6

An investment costs $4,000 today. This investment is expected to produce annual cash flows of $1,200, $1,400, $ 1,300 and $1,100, respectively, over the next four years. What is the internal rate of return (IRR) ( or geometric average) on this investment? Question 23 options: 2.43 % 6.25 % 9.72% 31.25%

You are considering an investment in a clothes distributer. The company needs $106,000 today and expects to repay you $124,000 in a year from now. What is the IRR of this investment opportunity? Given the riskiness of the investment opportunity, your cost of capital is 15%. What does the IRR rule say about whether you should invest? What is the IRR of this investment opportunity? The IRR of this investment opportunity is %. (Round to two decimal places.)

Consider an investment that costs 100,000 and has a cash inflow of 30,000 every year for 5 years. The required return is 10% and the required payback is 4 years. What is the discounted payback period? What is the profitability index?

Computing the Present Value of a Single Amount Depp is reviewing an investment that will provide a payout of $108,000 in five years. If Depp considers a 5% interest rate (compounded annually) acceptable, what amount is Depp willing to pay for the investment today? Round your answer to the nearest whole number. Do not use a negative sign with your answer.

If you put up GHC1,250 in a one-year investment and get back GHC1,350. What rate is this investment paying?

Future Value You invest $1,000 today and exect to sell the investment for $2,000 in 10 years.  a. Is this a good deal if the investment rate is 6%?  b. What if the interest rate is 10%? Why ? Show the calculations in Excel.

You are considering in investing one of the two options: Investment A requires a $175,000 upfront payment and generates $12,000 annually, Investment B requires a $250,000 upfront payment. How much should Investment B generate annually so that the total returns from Investment A and B become equal after 25 years? O None of the others O $15,000 O $9,000 O $75,000 O $3,000

Assume you invest $5,100 today in an investment that promises to return $6,928 in exactly 10 years. a. Use the​ present-value technique to estimate the IRR on this investment. b. If a minimum annual return of 9% is​ required, would you recommend this​ investment?       #69 Part 1 a. The IRR of the investment is enter your response here​%. ​(Round to the nearest whole​ percent.) Part 2 b. If a minimum return of 9% is​ required, would you recommend this​ investment?  ​(Select the best choice​ below.)     A. ​No, because this investment yields less than the minimum required return of 9%.   B. ​Yes, because a minimum required return of 9% does not compensate for an investment that lasts longer than one year.   C. ​No, because a minimum required return of 9% is an arbitrary choice for an investment of this risk level.   D. ​Yes, because this investment yields more than the minimum required return of 9%