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A:
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A: Formula:
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A: Initial Investment is $11,778 Cash Inflow per year = $2,000 Time Period = 10 Years
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A: Calculate the net present value as follows:
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A: Future value = Present Value * (1+r)^n Where, r = rate of interest n = no. of years
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A: Information Provided: Initial cost (X) = $200,000 Annual generated income (X) = $49,000 Initial cost…
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A: Note: Hi! Thank you for the question, As per the Honor Code, we are allowed to answer one question…
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- What is the present value of an investment that pays $190 at the end of year 1, $107 at the year of year 2, and $235 at the end of year 3 if this investment earns 5% annually? your answer should be to the nearest dollar. For example, if your answer is id=mce_marker50, then input as 150.What annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years?What is the IRR of an investment that costs $70,500 and pays $27,500 a year for 4 years?
- Assume that at the beginning of the year, you purchase an investment for $6,300 that pays $130 annual income. Also assume the investment's value has increased to $6,900 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places. Rate of return % b. Is the rate of return a positive or a negative number? Positive NegativeApproximately, what is the value of (P) if F=9540, n=2 years, and i= 2.5% per year?What is the IRR for a $980 investment that returns $205 at the end of 6 years?
- Assume that at the beginning of the year, you purchase an investment for $6,500 that pays $95 annual income. Also assume the investment's value has increased to $7,050 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.what is the internal rate of return of $10,000 investment that yields an annual benefit of $2,400 for 5 years?Assume that at the beginning of the year, you purchase an investment for $7,200 that pays $100 annual income. Also assume the investment's value has decreased to $6,800 by the end of the year. (a) What is the rate of return for this investment? (Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.) Rate of return % (b) Is the rate of return a positive or negative number? Positive O Negative
- Suppose you have an investment worth $800 and you want it to increase in value by 400%. a) What is the desired future value of the investment? For full marks your answer(s) should be rounded to the nearest dollar. FV = $ 0.00 b) How long will it take the investment to reach the desired future value, if it earns 5.50% compounded semi-annually? Your an be rounded up to the nearest month. Time = 0 years 0 monthswhat annual rate of return is needed to receive $930 in one year on an investment of $ 18,600?Consider an initial investment of $100 using an accumulation function which is a second-degree polynomial. You are given that the future values of this investment at the end of six months and the first year are $120 and $150, respectively. Determine the present value of 100$ which is paid at time -15.