You have an opportunity to invest $103,000 now in return for $80,200 in one year and...

You have an opportunity to invest $103,000 now in return for $80,200 in one year and $29,300 in two years. If your cost of capital is 8.9%, what is the NPV of this investment?

The NPV will be $____. (Round to the nearest cent)

Expert Solution

Calculation of NPV:

Time	Cashflow	PVF @8.9%	PV
-	-103000	1.00	-1,03,000.00
1.00	80200	0.9183	73,645.55
2.00	29300	0.8432	24,706.54
			-4,647.92
NPV is -$4647.92

jeff jeffy answered 6 months ago

You have an opportunity to invest $107,000 now in return for $79,300 in one year and...

You have an opportunity to invest $107,000 now in return for $79,300 in one year and $29,200 in two years. If your cost of capital is 9.1%, what is the NPV of this investment?

You have an opportunity to invest $51000 now in return for $601000 in one year. If...

You have an opportunity to invest $51000 now in return for $601000 in one year. If your cost of capital is 7.6%, what is the NPV of this investment?

You have an opportunity to invest $102000 now in return for $80200 in one year and...

You have an opportunity to invest $102000 now in return for $80200 in one year and $29400 in two years. If your cost of capital is 9.1% , what is the NPV of this investment?

You have an opportunity to invest $50,700 now in return for $59,300 in one year. If...

You have an opportunity to invest $50,700 now in return for $59,300 in one year. If your cost of capital is 8.3%, what is the NPV of this investment? The NPV will be (Round to the nearest cent.)

ou have an opportunity to invest $ 110 000 now in return for $ 79 500...

ou have an opportunity to invest $ 110 000 now in return for $ 79 500 in one year and $ 29 700 in two years. If your cost of capital is 8.6 % , what is the NPV of this investment?

Suppose you have $10,000 in your bank account and the opportunity to invest in a 5-year...

Suppose you have $10,000 in your bank account and the opportunity to invest in a 5-year project with the following certain cash flows: Year 1 2 3 4 5 CF $0 $0 $0 $0 $25,000 The risk-free interest rate in the economy is 10% per year for the next 5 years. Yesterday however, your car suddenly broke down and you need to buy a new one which would cost $10,000. Assume you really need the car to go to work,...

Investment A will return to you $2,089 in one year if you invest $1,750 today. Investment...

Investment A will return to you $2,089 in one year if you invest $1,750 today. Investment B will return to you $3,168 in one year. What is the most you will pay for Investment B? Round to the dollar.

Sheila and The Screamers have an opportunity to invest in one of two new types of...

Sheila and The Screamers have an opportunity to invest in one of two new types of recording equipment. Type 1 requires an initial investment of $150,000 for new equipment having a four-year life and no salvage value. Type 2 requires an initial investment of $150,000 for new machinery having a five-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. Type...

Sheila and The Screamers have an opportunity to invest in one of two new types of...

Sheila and The Screamers have an opportunity to invest in one of two new types of recording equipment. Type 1 requires an initial investment of $150,000 for new equipment having a four-year life and no salvage value. Type 2 requires an initial investment of $150,000 for new machinery having a five-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. Type...

1. Assume you will invest $850 this year, $1,200 one year from now, $1,250 two years...

1. Assume you will invest $850 this year, $1,200 one year from now, $1,250 two years from now, $1,550 three years from now, $1,540 four years from now, and $1,250 five years from now. Assuming the interest rate of 11.9% and that it will compound annually, what will be the future value of these investments five years from now? 2. Assume ABC Corp. will earn $450 this year, $600 one year from now, $600 two years from now, $800 three...

Question

You have an opportunity to invest $103,000 now in return for $80,200 in one year and...

Solutions

Expert Solution

Related Solutions

You have an opportunity to invest $107,000 now in return for $79,300 in one year and...

You have an opportunity to invest $51000 now in return for $601000 in one year. If...

You have an opportunity to invest $102000 now in return for $80200 in one year and...

You have an opportunity to invest $50,700 now in return for $59,300 in one year. If...

ou have an opportunity to invest $ 110 000 now in return for $ 79 500...

Suppose you have $10,000 in your bank account and the opportunity to invest in a 5-year...

Investment A will return to you $2,089 in one year if you invest $1,750 today. Investment...

Sheila and The Screamers have an opportunity to invest in one of two new types of...

Sheila and The Screamers have an opportunity to invest in one of two new types of...

1. Assume you will invest $850 this year, $1,200 one year from now, $1,250 two years...