Fred is considering an investment that will cost him $1000 today and will pay $200 at the end of each month for twelve months with a final cost at the end of the twelve month period of $400. Draw two cash flow diagrams, one showing the cash flows separately and the other showing the net cash flows.
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Fred is considering an investment that will cost him $1000 today and will pay $200 at the end of each month for twelve months with a final cost at the end of the twelve month period of $400. Draw two cash flow diagrams, one showing the cash flows separately and the other showing the net cash flows.
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- Suppose that P400 is deposited each year into a bank account that pays 8% interest annually. If 12 payments are made into the account, how much would be accumulated in his fund by the end of the 12th year? The first payment occurs at time zero (now). Draw a cash flow diagram too.Beyer Company is considering buying an asset for $350,000. It is expected to produce the following net cash flows. Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal places.)Walt is evaluating an investment that will provide the following cash flows at the end of each of the following years: year 1, $12,500; year 2, $10,000; year 3, $7,500; year 4, $5,000; year 5, $2,500; year 6, $0; and year 7, $12,500. Walt believes that he should earn an annual rate of 9% on this investment. How much should he pay today for the investment?
- Comparing Cash Flow Streams: You’ve just joined the investment banking fi rm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $95,000 per year for the next two years, or you can have $70,000 per year for the next two years, along with a $45,000 signing bonus today. The bonus is paid immediately, and the salary is paid at the end of each year. If the interest rate is 10 percent compounded monthly, which do you prefer?A process engineer plans on investing $5,000.00 now so that they may withdraw $500.00 a year for 12 years and still have $1,000.00 left in the account at the end of 12 years. a) Sketch the Cash Flow diagram. b) Write the equation for Present Worth of the cash flows in terms of the unknown rate of return. c) Calculate the rate of return on this investment using net present worth analysis techniques. (Hint: use linear interpolation).You have been offered the opportunity to invest in a project that will pay$3,509per year at the end of years one through three and$6,911per year at the end of years four and five. These cash flows will be placed in a saving account that pays11.95percent per year. What is the future value of this cash flow pattern at the end of year five? Round the answer to two decimal places. Your Answer:
- Consider two investments:1. Invest $1000 and receive $110 at the end of each month for the next 10 months. 2. Invest $1200 and receive $130 at the end of each month for the next 10 months. If this were your money, and you wanted to earn at least 12% interest on it, which investment would you make, if any? Solve the problem by annual cash flow analysis.Consider two investments: Invest $1,000 and receive $110 at the end of each month for the next 10 months Invest $1,200 and receive $130 at the end of each month for the next 10 months If this were your money, and you want to earn at least 12% interest on your money, which investment would you make, if any? Solve the problem by annual cash flow analysis.You are evaluating five different investments, all of which involve an upfront outlay of cash. Each investment will provide a single cash payment back to you in the future. Details of each investment appears here:. Calculate the IRR of each investment. State your answer to the nearest basis point (i.e., the nearest 1/100th of 1%, such as 3.76%). The yield for investment A is %. (Round to two decimal places.) Initial Future Investment Investment Value Im A $1,900 $4,029 B $9,600 $13,121 C $500 D $3,200 E $5,900 Data table $1,759 $4,139 $9,079 End of Year 11 9 18 3 12 I X
- Kabab Co. is considering a $240,000 investment, which will provide net returns of $110,000, $160,000, and $220,000 in the second, third, and fourth years, respectively. What is the payback period? Round up to the next month Use the following table: Year Cash Outflow Cash Inflow Net Cash Flow Cumulative Cash FlowFill in the blank to answer the below. You invested $20,000 at the beginning of the year. At the end of the year, you received cash flows of $400 from the investment and you cashed out entirely, receiving $21,600. What is your return for the year? %Arona would like to receive $15,820 each year for the next 5 years, starting today. Then she hopes to receive $17,500 per year at the beginning of the 6th year for an additional 5 years. In total 10 payments. Assume an interest rate of 6%. Find the present value of this cash flow stream. 2. Find the future value of this cash flow stream please use formula or any necessary diagram. please provide steps and explanation