Suppose the MARR is 12%. Use the following table to answer the question-The IRR on the CMS Investment isFMSInitial InvestmentAnnual RevenueUseful Life (Years)A. 17.0 % - 18.0%OB. 15.0 % - 16.0%OC. 11.0% - 12.0%O D.0.5% -1.0%O E.20.0% -21.0%CMS$20,0006,688$29,0009,102

Internal rate of return (IRR) of an investment is the rate of return at which the net present value…

Answered: Suppose the MARR is 12%. Use the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Calculate the HPR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Period Cashflow 0 -14100 1 3300 2 3300 3 3100 4 2800
Calculate the EAR of the following investment, entered as a percentage (Example: if your answer is 0.145, enter 14.5) Year Number Cashflow 0 -11400 1 3500 2 3000 3 3100 4 2800 Your Answer:
Calculate the APR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Year Number Cashflow 0 -11000 1 3000 2 3500 3 2900 4 2800
Can I please have the answers in these format : payback period = investement net annual inflow ARR = Average annual profit x 100 Average investment 1 can I have the answers in these type of format
Suppose the MARR is 5%. Use the following table to answer the question--The IRR on the incremental cash flow is CMS Initial Investment Annual Revenue Useful Life (Years) A 15.0 % -16.0% OB. 17.0 % -18.0% OC.1.0% -2.0% OD. 10.0 % -11.0% E. 21.0%-22.0% $31,000 $38,000 6,688 FMS 5 9,102
For the investment shown in the following table, calculate the rate of return earned over the unspecified time period. Cash flow during period Beginning-of- period value End-of- period value $370 $42,400 $36,500 The rate of return on the investment is enter your response here%
Returns. What are the returns on the following investments, E ? ..... Original Cost of Investment Selling Price of Investment Distributions Investment Received Percent Return CD $800 $810 $0 % (Round to two decimal places.)
Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR and the cash Inflows are as follows: Year 1 =1350 OMR; Year 2 =1400 OMR; Year 3=1450 OMR and Year 4=1500 OMR. Use discount rate as 5%. Select one: a. None b. 1.69 c. 1.83 d. 1.26 e. 1.48
What is the profitability index of an investment with cash flows in years 0 thru 4 of -340, 120, 130, 153, and 166, respectively, and a discount rate of 13%? A. 0.15 B. 0.22 C. 0.35 D. 0.42 E. 0.55
An investment of GH¢10000 returns GH¢3000 at the end of years 1 and 2 and GH¢3500 at the end of years 3 and 4. Calculate the IRR.
You must choose between two investments, G and W. The profitability index (PI), net present value (NPV) and internal rate of return (IRR) of the two investments are as follows: Criteria Investment G Investment W NPV –12 000 40 000 PI 0,985 1,053 IRR 20% 24% Which investment(s) should you choose, considering all the above criteria, if the cost of capital is equal to 21% per year
Calculate the Payback period (PBP) and Profitability Index (PI) of the investment and state the Pro’s and Cons of this method The annual incremental profits/ (losses) relating to the investment are estimated as follows: Years CF’s (000) Year 0 -175,000 Year 1 K11,000 Year 2 K3,000 Year 3 K34,000 Year 4 K47,000 Year 5 K8,000 Investment at the start of the project would be K175, 000,000.the investment sum assuming nil disposal value after five years, would be written off using the equal instalment method. The depreciation has been included in the profit estimates above, which should be assumed to arise at each year end. Assume the cost of Capital is 12% Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 D.f 1.00 0.893 0.797 0.712 0.636 0.567

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Suppose the MARR is 12%. Use the following table to answer the question-The IRR on the CMS Investment is CMS FMS Initial Investment Annual Revenue Useful Life (Years) A. 17.0 % - 18.0 % OB. 15.0 % - 16.0% OC. 11.0 % -12.0% OD.0.5% -1.0% O E. 20.0% -21.0% $20,000 6,688 5 $29,000 9,102