Assuming an interest rate of 5%, which three cash flows have the best Net Present Value? (Remember to show your work!): (Estimated Response Time for Average Student: 2 minutes) a. Cash Flows C, D, and F b. Cash Flows A, E, and D C Cash Flows D, E, and F d. Cash Flows D, F, and G e. Cash Flows D, E, and G
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- What is the rate of return when 12 shares of Stock A, purchased for $22/share, are sold for $465? The commission on the sale is $9. 4 F4 Copyright © 2003-2022 International Academy of Science. All Rights Reserved. F5 Rate of Return Enter the appropriate value into the formula to calculate the rate of return. A F6 5 RTY 6 & Total Cost = $273 Profit= $192 [?] Rate of Return = F7 7 * = F8 8 profit or loss total cost DELL F9 9. prtsc F10 home F11 Enter end F12 +11. InsertYou are the manager of the Mighty Fine mutual fund. The following table reflects the activity of the fund during the last quarter. The fund started the quarter on January 1 with a balance of $100 million. Mighty Fine Mutual Pund Monthly Data (measured at end of month) February -4.3 6.20 March January 5.5 Net inflows ($ million) HPR () -4.30 1.80 Required: a. Calculate the quarterly arithmetic average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Arithmetic average 1.23 % b. Calculate the quarterly geometric (time-weighted) average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Geometric average 1.14 % c. Calculate the quarterly dollar-weighted average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Dollar-weighted average returnA) If a company will pay $100,000 for a truck that will increase deliveries to be made, giving an additional $15,000 in revenue each year for 10 years, should the company buy it? Interest rates are 5%. B) Now revenue is estimated to be only $12,000 a year for 10 years. Same interest rate, should the truck be purchased?
- ****Only answer this question if you are sure about the correct answer**** ***Internal rate of Return Question*** 23- You want to buy a solar system to your store. If the monthly energy bills you get now is $125. b. The solar panel system is expected to be usable for 30 years. c. The cost of the solar panels system is $18,000. d. The solar panels system will provide all the electricity for your store. e. There will be a 26% federal tax break for purchasing the solar panels system. a. 1. What is the IRR % (...... .) 2. Yes or no, based on IRR is this a good investment (...... .)ECONOMICS UPVOTE WILL BE GIVEN. PLEASE WRITE THE SOLUTIONS LEGIBLY. NO LONG EXPLANATION NEEDED. Shala Co. is making a decision about investing in new technology. It currently expects to earn Php 100,000,000 in its lifetime. If it invests in brand-new equipment today, its expected earnings will permanently increase by 5% per day. What is the expected value of investing in the new equipment?4:09 470 3 of 3 Assignment 2-2022.pdf 420 ct the cash flow diagram for A mechanical device will cost $20,000 when purchased. Maintenance will cost $1000 per year. The device will generate revenues of $5000 per year for 5 years. The salvage value is $7000. 8. Each year Exxon-Mobil expends large amounts of funds for mechanical safety features throughout its worldwide operations. Carla Ramos, a lead engineer for Mexico and Central American operations, plans expenditures of $1 million now and each of the 2 next 4 years just for the improvement of field-based pressure- release valves. Construct the cash flow diagram and find the equivalent value of these expenditures at the end of year 4, using a cost of capital estimate for safety-related funds of 12% per year. 9. An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 $2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of A2 =…
- 1- In year 12 Adam earns $1450 and saves $550. In year 21 Adam gets a $4550 raise so that he earns a total of $6000. Out of that $6000, he saves $650. What is Adam's MPC out of his $4550 raise?30. You borrowed $5000 from your friend and promised to pay her $6250 after 10 years. What simple interest rate did your friend have in mind? a) 5.0% b) 2.5% c) 25% d) 4.5% e) 6%The notion of compound interest means that a) any amount you borrow will accumulate more and more interest, no matter how much you pay back. b) your interest will grow, but never at a rate higher than 13%. Oc) the demand for loanable funds is upward sloping. Od if you leave a lump sum (some dollar amount) in the bank for some period, it will accumulate interest both on the principal and on any accumulated interest. if you leave a lump sum (some dollar amount) in the bank for some period, it will only accumulate interest on the principal (the original amount you deposited).
- John plans to invest an equal amount of $2.000 in equity fund every year-end beginning with this year. The expected annual rate of return is 15%. She plans to invest for 20 years. The expected annual rate of return is 15%. She plans to invest in 20 years. How much could she expect to have at the end of 20 years?1.Find the present value of $20800 in 4 months at 12% simple interest. a)$200 b)$200,000 c)$2000 d)$20000 2.The simple interest on a $6500 loan at 15% for 9 months is. a)$731.25 b)$7312.50 c)$73.13 d)$2925 3. If we deposit $5000 in an account that pays 9% per year. Find the amount of simple interest earned during 8 months. a)$3000 b)$300 c)$360 d)$3600 4.The simple interest charged on a loan amount of $8500 for 2 years was $1275. What rate of interest was charged a)22.5% b)3.75% c)15% d)7.5% 5.What rate of simple interest will make a principal double itself in 6 years. a)16.67% b)8.33% c)33.33% d)4.16% 6.Find the present value of $20800 in 4 months at 12% simple interest. a)$200 b)$200,000 c)$2000 d)$20000uestion 3 If you want to minimize interest payments on a loan, you'll need one that has a simple interest rate so that yo John opened an account, and knew exactly how much it would be worth at the end of the year, because it used year. What is simple interest? Oa. Interest only on original amount saved or borrowed Ob. interest on original amount saved, borrowed and other interest earned Oc. a fee paid for the use of someone else's money Od. taxes on the original amount saved or borrowed L A Moving to another question will save this response. →