Firm invests $75,000 to save $9000/year in energy costs for 15 years. What is project’s rate...

Firm invests $75,000 to save $9000/year in energy costs for 15 years. What is project’s rate of return? Please Explain

Expert Solution

Rahul Sunny answered 2 years ago

The firm invests $75000 to save $9000/year in energy costs for 15 years. What is the...

The firm invests $75000 to save $9000/year in energy costs for 15 years. What is the project's rate of return? a. 8.44% b. 9.36% c. 2%

Let's say a firm invests $45,000 today for 10 years at an interest rate of 5.6%....

Let's say a firm invests $45,000 today for 10 years at an interest rate of 5.6%. What will be the investment's future value 10 years from now assuming that the interest rate will compound annually? How will your answers change if the interest rate compounds semiannually?

Alpha Company invests $12,000 at an interest rate of 12% for five years. What is the...

Alpha Company invests $12,000 at an interest rate of 12% for five years. What is the difference between simple and compound interests? Assume that in case the interest rate compounds monthly.

Project L costs $75,000, its expected cash inflows are $9,000 per year for 8 years, and...

Project L costs $75,000, its expected cash inflows are $9,000 per year for 8 years, and its WACC is 13%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

A 20-year-old student wants to save $1000 a year for her retirement. Every year she invests...

A 20-year-old student wants to save $1000 a year for her retirement. Every year she invests $1000 in a mutual fund with an expected annual return of 8%. How much money will she have when she is 65 years old? Assume that she invests right away and did not have any money in her saving account. Part B The same student, she wants to save $100 a month instead of $1000 a year. How much money will she have when...

Treatment A costs $50,000 and extends life by 10 years. Treatment B costs $75,000 and extends...

Treatment A costs $50,000 and extends life by 10 years. Treatment B costs $75,000 and extends life by 15 years. What is the incremental cost-effectiveness ratio for Treatment B? What additional information would you need to determine if Treatment B is worth the additional cost?

Vanessa invests $5,000 at the end of each of the next 15 years and her investment...

Vanessa invests $5,000 at the end of each of the next 15 years and her investment earns interest at an annual effective rate of 8%. The interest that she receives at the end of each year is reinvested and earns interest at an annual effective rate of 5%. Calculate the accumulated value at time 15 years. NO EXCEL EXCEL= THUMBS DOWN FORMULAS / SHOW WORK = THUMBS UP

What is the present worth difference between an investment of $75,000 per year for 35 years...

What is the present worth difference between an investment of $75,000 per year for 35 years and an investment of $75,000 per year forever at an interest rate of 9% per year?

You would like to have $75,000 in 15 years. To accumulate this amount, you plan to...

You would like to have $75,000 in 15 years. To accumulate this amount, you plan to deposit an equal sum in the bank each year that will earn 8 percent interest compounded annually. Your first payment will be made at the end of the year. a. How much must you deposit annually to accumulate this amount? b. If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should the lump-sum deposit be? ...

Consider a loan of 75,000 repayable by equal quarterly instalments over 15 years calculated at an...

Consider a loan of 75,000 repayable by equal quarterly instalments over 15 years calculated at an interest rate of 8.80% per annum convertible quarterly. From the lenders perspective, set a cash flow model in tabular form which covers all the scheduled repayments in the 15 years, allowing for tax at 30% on the interest component of the loan. Calculate the amount of each quarterly payment and calculate the after tax internal rate of return achieved by the lender on its...

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