The Hudson Corporation makes an investment of $65,240 that provides the followingcash flow:YearCash Flow1$ 32,00032,0002320,000Use Appendix B and Appendix D for an approximate answer but calculate your finalanswer using the formula and financial calculator methods.a. What is the net present value at a discount rate of 9 percent?Note: Do not round intermediate calculations and round your answer to 2decimal places.Net present valueb. What is the internal rate of return?Note: Do not round intermediate calculations. Enter your answer as a percentrounded to 2 decimal places.< Prev2 of 7Next >

Step 1: Calculate the NPV We will use this formula to calculate the NPV.NPV=CF0+∑(1+i)nCFn…

Answered: The Hudson Corporation makes an…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Calculate the EAR of the following investment, entered as a percentage (Example: if your answer is 0.145, enter 14.5) Year Number Cashflow 0 -11400 1 3500 2 3000 3 3100 4 2800 Your Answer:
Determine the present value of the following single amounts. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. 2. 3. 4. Future Amount $ 24,000 $ 18,000 $ 29,000 $ 44,000 i 5% 9% 11% 10% n= 10 13 25 9 Present Value
Determine the future value of the following single amounts. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. 2. 3. 4. Invested Amount 15,500 23,000 35,000 56,000 $ 67 67 $ $ $ i = 5% 5% 11% 6% n = 12 6 18 14 Future Value
Damien offers you a sequence of end-of-year cash flows for an investment as follows: Year 1 2 3 4 4 What is the value of the cash flows if the opportunity cost is 6 percent? (Round to the nearest dollar). Please click on the following link to access a blank worksheet Click to open:: O $8.392 $8.598 Cash Flow $4,000 $3,000 $2,000 $1,000 $8.734 $8.915
Christie, Incorporated, has identified an investment project with the following cash flows. Year 1234 Cash Flow $ 1,070 1,300 1,520 2,260 a. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the future value at an interest rate of 11 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What is the future value at an interest rate of 24 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Future value at 8 percent b. Future value at 11 percent c. Future value at 24 percent SCHO E 20 NE 201 oder als 20 HUG
Christie, Incorporated, has identified an investment project with the following cash flows. Year Cash Flow $ 1,020 1,250 1,470 2,210 1234 a. If the discount rate is 6 percent, what is the future value of these cash flows in Year 4? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the future value at an interest rate of 14 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. What is the future value at an interest rate of 21 percent? c. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Future value at 6 percent b. Future value at 14 percent c. Future value at 21 percent
Wells, Inc., has identified an investment project with the following cash flows. Cash Flow $ 950 1,180 1,400 2,140 Year 1 ~34 2 a. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the future value at an interest rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the future value at an interest rate of 24 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Future value at 8 percent b. Future value at 11 percent Future value at 24 percent c.
What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. $8,500 in 6 years at 12 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value b. $20,000 in 3 years at 11 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value c. $28,300 in 9 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value Prev 1 of 10 Next >
You are asked to evaluate an investment project with the following cash flows: Year 1 234. 2 4 Cash Flow $800 1,090 1,350 1,475 a. If the discount rate is 7 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 25 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 7% b. Present value at 17% c. Present value at 25% $ 3,926.98
Determine the present value of the following single amounts. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Future Amount 1. $ 33,000 2₁ $ 27,000 38,000 53,000 WN 3. $ 4. $ (= 4% 5% 12% 12% n= 10 18 20 12 Present Value
Determine the future value of the following single amounts. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1. PV of $1. FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) 1. 2 3. 4. Invested Amount 18,000 28,000 $ $ $ $ 40,000 61,000 8% 5% 5% 8% Ax 8 15 10 8 Future Valu THE
Suppose you are offered a project with the following payments: Year Cash Flows 0 $ 9,800 1 −5,300 2 −4,000 3 −3,100 4 −1,700 a. What is the IRR of this offer? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. If the appropriate discount rate is 15 percent, should you accept this offer? c. If the appropriate discount rate is 21 percent, should you accept this offer? d-1. What is the NPV of the offer if the appropriate discount rate is 15 percent? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. d-2. What is the NPV of the offer if the appropriate discount rate is 21 percent? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

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