Question
In: Finance
You are trying to choose between two different investments both of which have upfront cost of 92000$.
You are trying to choose between two different investments both of
which have upfront cost of 92000$.
investment G returns 157000$ in 9 years; investment H returns
277000$ in 16 years.
calculate the rate of return for each of these investments.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
You’re trying to choose between two different investments, both of which have up-front costs of $68,000....
You’re trying to choose between two different investments, both
of which have up-front costs of $68,000. Investment G returns
$128,000 in six years. Investment H returns $188,000 in 10
years.
Calculate the interest rate for Investments G and H.
You’re trying to choose between two different investments, both of which have up-front costs of $104,000....
You’re trying to choose between two different investments, both
of which have up-front costs of $104,000. Investment G returns
$169,000 in 9 years. Investment H returns $289,000 in 16
years.
Calculate the rate of return for each of these investments.
(Do not round intermediate calculations and enter your
answers as a percent rounded to 2 decimal places, e.g.,
32.16.)
Rate of Return
Investment G
%
Investment H
%
You are a financial manager and must choose between three different investments.
You are a financial manager and must choose between three
different investments. Each asset is expected to provide earnings
over a three-year period as outlined in the table below. Based
solely on the information below with the objective of maximizing
wealth, which Asset should you select and why?Year. Asset 1. Asset 2. Asset 3.1. $21,000. $9,000. $15,0002. 17,000. 15,000. 15,0003. 7,000. 21,000. 15,00045,000. 45,000. 45,000
A company has to choose between two different investments. Investment A: This investment requires an immediate...
A company has to choose between two different investments.
Investment A: This investment requires an immediate outlay of
$60,000 and another investment of $50,000 in year 3. The investment
will return annual profits of $45,000 from year 2 to year 8. At the
end of year 8, the investment has a residual value of $20,000.
Investment B: This investment requires an immediate outlay of
$25,000 and additional investments of $10,000 per year from year 1
to year 3. The investment...
A farmer must choose between two possible investments that both require an initial outlay of $120,000...
A farmer must choose between two possible investments that both
require an initial outlay of $120,000 and will have no salvage
value at the end of their economic life (3 years). The first
investment is expected to yield annual net cash flows of $55,000
over a 3-year planning horizon. The second will yield $30,000 in
the first year, $40,000 in the second and $50,000 in the third.
-The farmer finances 50% of the investment with an outside loan
(interest rate...
You are trying to decide between two investments. The first investment has a 90% chance to...
You are trying to decide between two investments. The first
investment has a 90% chance to make you $2,000, but the alternative
is that you could be losing $5,000. The second investment has a 15%
chance to make you $25,000, but the alternative is that you could
be losing $5,000. Use expected value to help decide which
investment is the mathematically smart choice. (Hint: make two
separate expected values and compare).
You are trying to choose between purchasing one of two machines for a factory. Machine A...
You are trying to choose between purchasing one of two machines
for a factory. Machine A costs $15,500 to purchase and has a
three-year life. Machine B costs $17,400 to purchase but has a
four-year life. Regardless of which machine you purchase, it will
have to be replaced at the end of its operating life. Which machine
should you choose? Assume a marginal tax rate of 35 percent and a
discount rate of 15 percent. (Round answers to 2
decimal...
You are trying to choose between purchasing one of two machines for a factory. Machine A...
You are trying to choose between purchasing one of two machines
for a factory. Machine A costs $17,299.00 to purchase and has a
3.00 year life. Machine B costs $18,503.00 to purchase but has a
4.00 year life. Regardless of which machine you purchase, it will
have to be replaced at the end of its operating life.
Which machine should you choose and what is the cost TODAY of
running the machine for the next 27.00 years? Assume a discount...
A. X-treme Vitamin Company is considering two investments, both of which cost $20,000. The firm’s cost...
A. X-treme Vitamin Company is considering two investments, both
of which cost $20,000. The firm’s cost of capital is 15 percent.
The cash flows are as follows:
Year
Project A
Project B
1
12000
10000
2
8000
6000
3
6000
16000
(a) What is the payback period for each project? Which project
would you accept based on the payback period?
(b) What is the discounted payback for each project? Which project
would you accept based on the discounted payback criterion?...
you have the choice of two investments of equal risk. The required return for both is...
you have the choice of two investments of equal risk. The
required return for both is 8%. The first pays 1500 per month for
30 years and starts in 2 years. The second pays 15000 per year in
perpetuity, but starts in 3 years. If the cost of both the
investments is the same, which one would you prefer and why?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Given a connected graph G with n vertices. We say an edge of G is a...
- Let iqsort(A, 1, n) be an algorithm that sorts an array A with n integers. It...
- Write a program to print the number of class assignments you have done so far, the...
- This is in C# on visual Basic Write a base class that has two property members:...
- Greta, an elderly investor, has a degree of risk aversion of A = 3 when applied...
- Should certain categories of drugs be decriminalized? What might the impact be – in the short-...
- How does your initiative support student learning in the classroom? Cost/Factors for implementation the bottom you...
ADVERTISEMENT