Question

In: Finance

Work through and explain the following: An investor spent -$100 today and received; • +$10 Y1...

Work through and explain the following:
An investor spent -$100 today and received;
• +$10 Y1
•+$75 Y2
•+$150 Y3

Assume an interest rate of 8%,
Advise if you would accept this project and why.

Solutions

Expert Solution


Related Solutions

Explain why $100 received today is not the same as $100 received next year. What is...
Explain why $100 received today is not the same as $100 received next year. What is the meaning of the time value of money. What is the purpose of learning the mathematics behind the time value of money? What are the factors that affect the overall level of interest rates?
Use the following to answer questions 10 through 13: Please explain and show work. Each time...
Use the following to answer questions 10 through 13: Please explain and show work. Each time I do it I get different answers. Montana Inc. sells computer systems. Montana leases computers to Utah Company on June 30, 2017. The computers cost Montana $12 million to manufacture. The lease is non-cancelable and has the following terms: Lease payments: $2,466,754 semiannually; first payment due June 30, 2017; remaining payments due December 31 and June 30 each year through December 31, 2021. Lease...
*Please show work and explain steps* Assume Y1, ... , Yn are IID continuous variables with...
*Please show work and explain steps* Assume Y1, ... , Yn are IID continuous variables with PDF f(yi; θ), where f is dependent on a parameter θ. Complete the following: a) Derive the likelihood, L(θ), and the log-likelihood, l(θ), in terms of the function f. b) Find dl/d(theta) in terms of f(yi; θ) and df/d(theta). Note that dl/d(θ) is usually referred to as the score function. c) Show that E[dl/d(θ)]= 0. Hint: you can use without proof the following: ∫...
What is the PV of $100 received in year 10 (at a discount rate of 1%)?...
What is the PV of $100 received in year 10 (at a discount rate of 1%)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)      Present value $       b. What is the PV of $100 received in year 10 (at a discount rate of 13%)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)      Present value $       c. What is the PV of $100 received in year 15 (at a...
Please explain and work through the following genetics problem: An organization of the data set given...
Please explain and work through the following genetics problem: An organization of the data set given below in a table. The determination of recombinant classes. The determination of the double recombinant class. All calculations and determinations of individual map distances. A final map with the correct placement of genes relative to one another and their map distances. Calculations of the coefficient of coincidence (with actual and expected DCOs) and calculation of interference. Analyze this data set: +++ - 1340 abc...
6.5 Of 100 customers who received promotional materials for a marketing campaign, 10 responded to the...
6.5 Of 100 customers who received promotional materials for a marketing campaign, 10 responded to the promotion. For the following confidence levels, construct a confidence interval for the population proportion who would respond to the promotion. (a) 90% (b) 95% (c) 99% (d) For each of the confidence intervals above, calculate and interpret the margin of error. (e) Refer to part (d) above. Describe the relationship between margin of error and confidence level.
A real estate investor has bought an office building valued at $100 million. After a 10%...
A real estate investor has bought an office building valued at $100 million. After a 10% down payment for the property price, the investor has borrowed a one-year mortgage loan at 10% interest rate from Nopay Bank to finance the remaining purchase price. The credit rating of the investor is ABB indicating that his probability of default is 3%. The current market value of the office building is $100 million. The office building is pledged with Nopay Bank as collateral....
Given a normal distribution with 100 and 5-10, complete parts (a) through (d)
Given a normal distribution with 100 and 5-10, complete parts (a) through (d).  a. What is the probability that X > 95?    The probability that X> 95 is _______  b. What is the probability that X< 85?    The probability that X < 85 is _______  c. What is the probability that X < 75 or X> 115?   The probability that X < 75 or X> 115 is _______  d. 90% of the values are between what two X-values (symmetrically distributed around the mean)?   90%...
An investor obtains the following information: • Stock price today = $120 • Stock price one...
An investor obtains the following information: • Stock price today = $120 • Stock price one year from today can take two values: $110 or $130 • Exercise price = $120 • Risk free interest rate = 5% per annum What should be the price of a put option on the given stock under these conditions (use discrete discounting)?
An investor is considering the following opportunity: He will put capital into a start-up company today....
An investor is considering the following opportunity: He will put capital into a start-up company today. He will not receive any cash flows from the investment until end of the 5th year. At that point, he will receive 10.00 years of $14,100.00 per year. If his discount rate on this investment is 18.00%, what is the value of this opportunity today? A family takes out a mortgage for $278,000.00 from the local bank. The loan is for 30 years of...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT