3. A man has an investment of P 13, 760.00 in cash for equipment. His estimates of the year receipts and disbursements for all purposes are shown below. Year Receipts Disbursement P0.00 P 13, 760.00 P 5, 000.00 + P 1, 000.00 2 P 6, 200.00 +P 1, 200.00 3 P 7, 500.00 + P 1, 500.00 4 P 8, 800.00 +P 1, 800.00 He estimates that his equipment has a salvage value of P 2,000.00 at the end of its useful life. Find the rate of return of the investment. R SALE

3. A man has an investment of P 13, 760.00 in cash for equipment. His estimates of the year receipts and disbursements for all purposes are shown below. Year Receipts Disbursement P0.00 P 13, 760.00 P 5, 000.00 + P 1, 000.00 2 P 6, 200.00 +P 1, 200.00 3 P 7, 500.00 + P 1, 500.00 4 P 8, 800.00 +P 1, 800.00 He estimates that his equipment has a salvage value of P 2,000.00 at the end of its useful life. Find the rate of return of the investment. R SALE

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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7. Consider the following table for the cash flows of an investment account: Time mm/dd/yy 01/01/2015 04/01/2015 08/01/2015 12/31/2015 Contribution -300 +2,000 (a) Calculate the TWRR and the DWRR of the fund. (b) Comment on the results. Fund value before contribution 1,000 500 250 2,800
The following are the cash flows of two projects: Project B Year Project A 0 $ (235) $ (235) 115 135 115 135 115 135 115 1234O 1 2 3 4 What are the internal rates of return on projects A and B? Note: Enter your answers as a percent rounded to 2 decimal places. Project A B IRR % %
Information on four investment proposals is given below:Investment ProposalA B C DInvestment required ........................ $(90,000) $(100,000) $(70,000) $(120,000)Present value of cash inflows ......... 126,000 138,000 105,000 160,000Net present value ............................ $ 36,000 $ 38,000 $ 35,000 $ 40,000Life of the project ............................ 5 years 7 years 6 years 6 yearsRequired:1. Compute the project profitability index for each investment proposal.2. Rank the proposals in terms of preference.
ou are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A B C 1 $ 2,000 $ 2,000 $ 6,000 2 3,000 2,000 6,000 3 4,000 2,000 (6,000) 4 (5,000) 2,000 (6,000) 5 5,000 6,000 16,000 a. What is the present value of investment A at an annual discount rate of 13 percent? b. What is the present value of investment B at an annual discount rate of 13 percent? c. What is the present value of investment C at an annual discount rate of 13 percent?
A3 4a. We have two mutually exclusive investments with the following cash flows: Year Investment A Investment B 0 –$100 –$100 1 10 50 2 30 40 3 50 30 4 70 20 a. Using a financial calculator, calculate the IRR for each of the investments. State your answers in percentages rounded to two decimal places.
Compute the payback period for an investment with the following net cash flows (Round your answer to one decimal place.) Net Cash Flows per Year $ (115,000) 11,000 21,000 21,000 2. 3. 4. Year 41,000 years Cumulative Net Cash Flows $ (118,000) (105,200) (84,400) (62,000) (37,620) 4,100 45,900
The following are the cash flows of two projects: Year Project A Project B 0 $ (390 ) $ (390 ) 1 220 290 2 220 290 3 220 290 4 220 What is the payback period of each project? (Round your answers to 1 decimal place.) I In Years
The following are the cash flows of two projects: Year O1234 0 Project A $ (340) Project B $ (340) 170 240 170 240 170 240 170 What is the payback period of each project? Note: Round your answers to 1 decimal place. > Answer is complete but not entirely correct. Project A Payback Period 2.0 years B 2.8 years
Example (1): You have the following data: Details 12/31/2020 1/1/2020 60000 80000 40000 150000 15000 50000 10000 20000 Fund Assets Debtors Goods Liabilities Creditors and you have available additional information: 1. Additions to the capital amounted to 100,000 dinars . 2. Withdrawals from the capital amounted to 40,000 dinars. Required: Extracting the result of the activity works on 31/12/2020.
at the beginning of year one, you have $100,000. Investments A and B are available. Their cash flows are as follows year 1 investment A $-1, investment B $0 Year 2 investment A $.5, investment B $-1. Year three investment A .8 investment B .8. In year 4 investment a .2 investment B .7. Assume that any money not invested in a or B earns interest at an annual rate of 2.5%. Determine how to maximize your cash on hand in your four
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A B C 1 $ 3,000 $ 1,000 $ 5,000 2 4,000 1,000 5,000 3 5,000 1,000 (5,000) 4 (6,000) 1,000 (5,000) 5 6,000 5,000 15,000 (Click on the icon in order to copy its contents into a spreadsheet.) What is the present value of each of these three investments if the appropriate discount rate is 14 percent? Question content area bottom Part 1 a. What is the present value of investment A at an annual discount rate of 14 percent? $ enter your response here (Round to the nearest cent.)
Assume a $50,000 investment and the following cash flowa for two aleternatives.. Year Investment A Investment B 1 $10,000 $20,000 2 $11,000 $25,000 3 $13,000 $15,000 4 $16,000 5 $30,000 Which alternative would you select under the payback method? 6

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