An investment has the following structure: You are required to spend $2,327.41 today, and 20 years later you receive $3,675.37 What is the IRR of this situation? Enter the answer below in \%, minus the \% sign accurate to two decimal places (i.e. 5.267% would be entered as 5.27) What is the NPV of this situation?
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V3
An investment has the following structure: You are required to spend
$2,327.41
today, and 20 years later you receive
$3,675.37
What is the IRR of this situation? Enter the answer below in \%, minus the \% sign accurate to two decimal places (i.e.
5.267%
would be entered as 5.27) What is the NPV of this situation? Enter this in your drobox submission and show your work in your submission.
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- 3. Your boss has suggested that, instead of a savings of $37,000 annually, it makes more sense to expect a savings that starts at $20,000 in year 3 and rises $2,000 per year to an ending value in year 13 of $40,000. She bases her suggestion on the fact that the experience curve will gradually reduce production costs. What would be the NPV of the cash flow at 4% if you adopt her suggestion?A project has an initial cost of $26,000, a discount rate of 11.7 percent, a life of 5 years, and an NPV of $11,216. Given this, you know that the project is expected to earn a return: A equal to 11.7 percent of $26,000 plus an additional $11,216. B of $11,216 in total. C equal to 11.7 percent of $37,216 (= $26,000 + 11,216). D of 11.7 percent of $11,216. E of $26,000 minus $11,216.Assume the total cost of a college education will be $336,000 when your child enters college in 18 years. You presently have $71,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
- The following graph has plots of the net PW of an investment as functions of %-ge changes in the values of the input variables V1, V2, V3, V4 and V5. V1 V2 V3 50% NGƯỜ V5 -30% -20% $200,000 $150,000 $100,000 $50,000 -10% -$50,000 - -$100,000 -$150,000 0% Present Worth B. Decrease of $25,000 C. Increase of 22% D. No change can affect economic feasibility E. Decrease of 22% 10% To which two variables is the present worth most sensitive to? A. V1 and V2 B. V3 and V4 C. V4 and V5 D. V1 and V5 OE. V2 and V3 % change 20% 30% 40% 50% What is the maximum allowable change in V2 before the investment becomes un-economical? OA. Increase of $25,000You are a coffee connoisseur; you can't remember the last time you went one day without a warm cup of Joe. In fact, your normal routine (7 days a week, 52 weeks a year) is to spend $6 for a large, warm beverage. But, this course has you wondering if quitting coffee would provide a nice way to inflate your retirement fund by age 65. So, at 25 years old, you decide to save your $6 for each day of the week and deposit it every Friday (this means you make one $42 deposit each week, 52 weeks per year) into an account. You plan to repeat this deposit every week for the next 40 years, earning 8% compounded weekly in your coffee account. How much will you have in 40 years? |||After graduation, you face a choice. One option is to work for a multinational consulting firm and earn a starting salary (benefits included) of $40,000. The other option is to use $6,000 in savings to start your own consulting firm. You could earn an interest return of 5 percent on your savings. You choose to start your own consulting firm. At the end of the first year, you add up all of your expenses and revenues. Your total includes $9,000 in rent, $850 in office supplies, $18,000 for office staff, and $3,500 in telephone expenses. Your explicit costs are $ Your implicit costs are $
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