What amount of cash must be invested today in order to have $60,000 at the end of one year assuming the rate of return is 9%? (Do not round your PV factors.) A. $54,600.00 B. $45,454.56 C. $55,045.88 D. $54,000.00

What amount of cash must be invested today in order to have $60,000 at the end of one year assuming the rate of return is 9%? (Do not round your PV factors.) A. $54,600.00 B. $45,454.56 C. $55,045.88 D. $54,000.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: O Question 4 What is the future value of the following cash flow stream at a rate of 7.5%? Years:…

A: Solution:When an amount is invested somewhere, it earns interest on it.The amount initially invested…

Q: 3.37 What value of A makes two annual cash flows equivalent at 13% interest com- pounded annually?…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: There is a cash inflow of $500 today and a cash outflow of $500 two years from now. If the current…

A: To find the value of these cash flows at the end of year 1, we need to first discount or compound…

Q: 10. The appropriate discount rate for the following cash is 10% per year: Year flows 2 तत 3 Cash…

A: The future worth of the current amount can be computed after adding up the product of the FVIF for…

Q: For the cash flows below, determine the amount in year 1, if the annual worth in years 1 through 9…

A: Annual Worth :— The annual worth is the net of all the benefits and costs incurred over a one-year…

Q: ΕΟΥ 3 4 Cash Flow $15,000 $22,000 $29,000 $8,000 $36,000 What is the uniform annual equivalent if…

A: Interest Rate = 12% Year Cash Flow 1 8000.00 2 15000.00 3 22000.00 4 29000.00 5…

Q: Q2: A $15,000 investment is to be made with anticipated annual returns as shown in the spreadsheet…

A: Variable in the question: AB1EOYCash Flow…

Q: Evaluate the future value of an investment that has the following multiple cash flows: Year Cash…

A: Cash Flow for Year 2 = cf2 = $22,100Cash Flow for Year 3 = cf3 = $40,100Cash Flow for Year 5 = cf5 =…

Q: The present value of an investmnet with three year-end cash flows of $100,000, $150,000, $200,000…

A: Capital budgeting is one of the important technique used in finance. It helps in identifying and…

Q: Question 6 Calculate the rate of return per year (IRR) for the following cash flow:(XO=s-56,000,…

A: Internal rate of return is the discount rate where the present value of inflows equals present value…

Q: Suppose you earned a $330,000 bonus this year and invested it at 8.25% per year. How much could you…

A: It is a case of calculating the annuity of withdrawals. The withdrawals are done on an annual basis…

Q: 3. An investment has the following cash flows. What is the ARR? Year 0 -120,000 30,000 40,000 60,000…

A: Cost of Investment : $120,000 Project Life : 5 Years Depreciation per year : $120,000 / 5 = $24,000…

Q: You recently paid $13,500 for an investment that promises to pay S675 at the end of each of the next…

A: Investment Amount = 13500 Annual payment = 675 Tenure = 6 years…

Q: What is the project's MIRR? r = 10.00% 0 -$875 Year Cash flows O a. 22.51% O b. 11.75% O c. 17.21% O…

A: YearsCash Flows0($875)1$3002$3203$3404$360Rate10%Required:Modified Internal Rate of Return =?

Q: You recently paid $13,275 for an investment that promises to pay $675 at the end of each of the next…

A: Given: The amount paid for the investment is $13,275 and the annual receipts from investment is $675…

Q: rejecting it? LO 3 8. Calculating IRR What is the IRR of the following set of cash flows? Year Cash…

A: Net Present Value: Net present value (NPV) is the excess of present value of cash inflows over the…

Q: What annual rate of return is earned on a $5,000 investment when it grows to $10,250 in five years?…

A: Investment (P) = $5,000 Accumulated amount (A) = $10,250 Period (n) = 5 Years

Q: An investment pays SX in one year, $300 in two years, and $500 in three years. The total present…

A: Here, Investment Pays in One year is $X Investment Pays in two years is $300 Investment Pays in…

Q: A potential investment has a cost of $440,000 and a useful life of 6 years. Annual cash sales from…

A: Future value refers to the compounded value of the future cash flow. Compounding is done with the…

Q: An investment that would require an initial cash outflow of $360,000 at the beginning is expected to…

A: Data given: Initial cash outflow= $360,000 Cash Inflow= $ 70,000 n= 7 years Required return=13%…

Q: Find the size of B in the following cash flow diagram if the interest is 8% per year. $130 1 H 2…

A: Data given: Rate=8% Arithmetic gradient from year 1 to 5= - $20

Q: $27,300.00

Q: Assume that you will receive $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through 8,…

A: Let CFn be the cashflow in year n. CF1 to CF5 = $2000 CF6 to CF8 = $3000 CF9 = $4000 r = 14%

Q: Project M nominal cash flows $87.32 $49.64 $89.59 $34.29 time 0 $41.09 1 $30 2 $30 uppose the real…

A: The present value concept is. One of most important concepts. IN the calculation of present value…

Q: 3. An investment pays as shown in the cash flow diagram below. $60,000 $40,000 $35,000 $20,000 2 8…

A: Given: Interest rate "r" = 3% compounded monthly Hence, effective annual interest rate will be:…

Q: What is the simple annual rate of return on a $10,000, 3-year investment with cash inflows of $2,000…

A: The simple annual rate of return is calculated by dividing the annual cash flow by the initial…

Q: What rate of return would you need if you wanted to accumulate $1,000,000 in 25 years and invest…

A: Rate of return: It implies to the rate that is often expected or charged by the investor from the…

Q: Question 23 What is the future value of the following cash flow stream at a rate of 8%? Do not round…

A: CF year 1 = CF1 = 1,350 CF year 2 = CF2 = 3,750CF year 3 = CF3 = 4,500CF year 4 = CF4 = 6,250Rate =…

Q: An investment project has annual cash inflows of $3,700, $4,600, $5,800, and $5,000, for the next…

A: Discounted payback period refers to the number of years it takes for the present value of cash…

Q: Ann knows that the effective rate is 17% per year compounded monthly. She has asked you to evaluate…

A: Interest rate (r) = 17% per annum = 1.41667% per month Let cashflows be denoted by CFn. As the…

Q: What is the net future value of the following cash flow stream? Nothing today, + $100 for each of…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: None

A: Step 1: Given Value for calculation Future Value = fv = $39,000Time = t = 1 yearsRate of Return = r…

Q: Problem 6.42(b) What is the dollar amount you need to invest every year, starting at age 26 and…

A: IN the question the Present Value is not given and rate is also not mentioned. The below provided…

Q: Question 02: You have invested $38,000 in a project. The expected year end cash flows are $15,000;…

A: The term payback period refers to the amount of time required by an investment or project to recover…

Q: None

A: Formula:PV = FV / (1 + r)n Where:PV = Present ValueFV = Future Value (the cash flow in the future)r…

Q: 1) What is the present worth of this cash flow diagram given i = 8.66% ? 2) What is the future worth…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: question 11 What is the present value of investment A, B, and C at an annual discount rate of 24…

Q: Question 6: What is the present value of your end-of-year investment of $1,000 per year, with the…

A: There are two parts of solutions we have to calculate present value of three years and present value…

Q: Q1.26 Construct a cash flow diagram that represents the amount of money that will be accumulated in…

A: Initial Investment20000Annual cash flow3500Tenure,Year7

Q: QUESTION 2 You expect to receive $100 in year 1, $150 in year 2, and $200 in year 3 if you invest in…

A: The payback period refers to the capital budgeting metric which takes into account the cumulative…

Q: What amount of cash would result at the end of one year, if $14,000 Invested today and the rate of…

A: Given that, Present value of investment = $14000 Rate of interest = 12% Value at the end of year 1=?

Q: what is the present value of a series of $6000 end of the year cash flowsto be received forever if…

A: Time value of money is one of the useful technique being used in finance. It says that a sum of…

Q: Which of the following cash flows has the highest future value? A. $1000 invested for two years in…

A: Option a.Option b.Option c.Option d.Amount invested$1,000$1,000$1,000$1,000Interest…

Q: ques 8

A: Calculate the Present Value (PV) of the $10,000 annual withdrawals over 5 years, starting from year…

Q: 1. You want to have this amount at the end 913 Your money will be invested this number of yer You…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

What amount of cash must be invested today in order to have $60,000 at the end of one year assuming the rate of return is 9%? (Do not round your PV factors.)
A. $54,600.00
B. $45,454.56

C. $55,045.88

D. $54,000.00

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

question 13
question 13
What amount of cash must be Invested today in order to have $60,000 at the end of one year assuming the rate of return Is 9%? (PV of $1 and PVA of $1) (Use approprlate factor(s) from the tables provlded.) Multiple Choice $45.455 $54.000 $55.046 $54,600
i need the answer quickly
question 14
Question 3 Find the value of x in the diagram below that would make the equivalent present worth of the cash equal to $ 22,000, if the interest rate is 13% per year. P=$22,000 A= S1.000 0 12 3 4 5 6 7 8 9 10 11
Cash Flow -$50,000 $ 7,000 $ 4,000 $9,000 $61,000 Year 1 2 3 4 What is the internal rate of return (IRR) for this investment? 17. Using the information above, wha investment using a 10% discount rate? the NPV of this
QUESTION-1 Consider the following cash flow and calculate the rate of return. MARR is 5%, compounded annually. Year 0 1 2 3 4 5 6 7 8 Cash -25,000 6,000 4,000 5,000 7,000 -20,000 ,12,000 16,000 20,000 pls reply urgent
What amount of cash would result at the end of one year, if $15,000 is invested today and the rate of return is 8%? A) $16,200 B) $13,889 C) $15,000 D) $1,200
Solve Problem 20.17 using Excel.
13
plz answer question 3.