4. Engineers of a company have $8000 for using as principal (anapara) to invest, and there are 3options available. If d, dollars (in thousands) are invested in investment j, then a net presentvalue (in thousands) of ri(d)) is obtained, where the ri(d))'s are as follows:ri(di)=7d₁ + 2 (d₁20)r₂(d₂)=3d₂+7 (d₂ ≥ 0)ra(da)=4d3 +5 (d, ≥ 0)r₁(0)= r₂ (0) 3 (0) = 0=Engineers can only invest these options with the exact multiples of $1000 ($1000, $2000, $3000...)How can company engineers allocate $8000 to maximize the income from these investments?

We are given $8,000 to invest in three available options- R1, R2, & R3.The total amount…

Answered: Engineers of a company have $8000 for…

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

See similar textbooks

Similar questions

4. Engineers of a company have $8000 for using as principal (anapara) to invest, and there are 3 options available. If di dollars (in thousands) are invested in investment j, then a net present value (in thousands) of ri(d) is obtained, where the ri(d))'s are as follows: r₁(d₁)=7d₁ + 2 (d₁ ≥ 0) r2(d₂) = 3d₂ + 7 (d₂ ≥ 0) r3(d3) = 4d3 + 5 (d3 ≥ 0) r₁(0) = r2 (0) = r3 (0) = 0 Engineers can only invest these options with the exact multiples of $1000 ($1000, $2000, $3000...) How can company engineers allocate $8000 to maximize the income from these investments?
Problem 2: The amount of an investment is represented by f(t) = 4186.58(1.025)*. Algebraically, determine when (in compounding periods t) the investment will reach $1,000,000.
A company is thinking of investing in one of two potential new products for sale. The projections are as follows: Year Revenue/cost £ (Product A) Revenue/cost £ (Product B)0 (150,000) outlay (150,000) outlay 1 24,000 12,0002 24,000 25,3333 44,000 52,0004 84,000 63,333 Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%. Which product should be chosen and why?
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
uality Service’s revenue on account is P60,000 and the cash basis is P90,000. The cost of services is P80,000. The capital of Quality will increase by: a. P 10,000 b. P 70,000 c. P 90,000 d. P150,000
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
A company is thinking of investing in one of two potential new products for sale. The projections are as follows: Year Revenue/cost £ (Product A) Revenue/cost £ (Product B)0 (150,000) outlay (150,000) outlay 1 24,000 12,0002 24,000 25,3333 44,000 52,0004 84,000 63,333 Calculate the IRR for Product B only using 3% and 15% to 2 d.p.
1. What is the value of ROR (i*) for the following equation?O= -20,000 + (29,000 - 21,000) (P/A, i*,4)A. 20%B. 21%C. 9%D. 23%
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. (EV of $1. PV of $1. EVA of $1.PVA of $1. EVAD of $1 and PVAD of $1) Invested Amount 15.000 20,000 30.000 50,000 1 S 3 234 $ 4 S 1 = ON 0% 12% 4% n = 12 10 20 12 Future Value
Q) For a given company studies indicate that due to the nature of contract business, any excess funds generated are expected to earn at a rate of 11% per year. Use the ROIC method to determine the rate of return on invested capital value for the given cash flow series.(X0=$2,000, X1=$-900, X2=$-7,000, X3=$6,900) Explain it early but not in excel works. Typed or handwriting onlys
ne Internal rate of return For the project shown in the following table, , calculate the internal rate of return (IRR). Then indicate, for the project, the maximum cost of capital that the firm could have and still find the IRR acceptable. The project's IRR is %. (Round to two decimal places.) ts eText dia Librai Calculat Resaurce Emter vour amswer in the amswer box and then click Check Answer. ic Studiy Check Answer part memaiming Clear All Tiration Tiools > Ouestion 10 (0/1) Ouestion 11 (0/1). Question 12 (0/1) Question 9 (0/1) 5/1 Type Ihere to search insert
Suppose A=D+E, E=$350,000 and E/A=0.7. Solve for D.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS