You are considering investing in a security that will pay you ​$5,000 in 29 years. If the appropriate discount rate is 12 percent​, what is the present value of this​ investment? b.  Assume these investments sell for ​$2,423 in return for which you receive ​$5,000 in 29 years. What is the rate of return investors earn on this investment if they buy it for ​$2,423​? If the appropriate discount rate is 12 percent, the present value of this investment is

You are offered an investment that requires you to put up $5,000 today in exchange for $12,000 10 years from now. What is the annual rate of return on this investment?

You are considering investing in a security that will pay you 2,000 in 25 years. If the appropriate discount rate is 9 percent what is the present value of this investment? Assume these investments sell for $1,103 in return for which you receive $2,000 in 25 years. What is the rate of return investors earn on this investment if they buy it for 1, 103 ?

You have just received a windfall from an investment you made in a friend's business. He will be paying you $17,752 at the end of this year, $35,504 at the end of the following year, and $53,256 at the end of the year after that (three years from today). The interest rate is 11.7% per year. a. What is the present value of b. What is the future value of your windfall in three years (on the date of the last payment)? your windfall? a. What is the present value of your windfall? The present value of your windfall is $ (Round to the nearest dollar.) b. What is the future value of your windfall in three years (on the date of the last payment)? The future value of your windfall in three years is $ (Round to the nearest dollar.)

An investor pays £300 now in order to get £150 in 4 years' time and £200 in 8 years' time. What is the annual effective rate of interest earned on this investment?

You are valuing an investment that will pay you $26,000 per year for the first 4 years, $36,000 per year the next 11 years, $49,000 per year the next 17 years, and $45,000 per year the following 10 years (all payments are at the end of each year). If the appropriate annual discount rate is 6.00%, what is the value of the investment to you today?

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%

You are looking at an investment that will make annual payments of $28,000, $32,000, $66,000, and $99,000 to you each year over the next four years, respectively. All payments will be made at the end of the year. If the appropriate interest rate is 3.6 percent, what is the value of the investment offer today?

What is the no arbitrage price of a risk-free investment that promises to pay $1,000 in one year? The risk-free interest rate is 3.5%. If you can purchase the investment for $950, do you have an arbitrage opportunity?

Suppose the risk - free interest rate is 4.2%.a. Having $200 today is equivalent to having what amount in one year?b. Having $200 in one year is equivalent to having what amount today?c. Which would you prefer, $200 today or $200 in one year? Does your answer depend on when you need the money? Why or why not?a. Having $200 today is equivalent to having what amount in one year?Having $200 today is equivalent to having Sin one year. (Round to the nearest cent.)