1. You have the following info. on a potential investment: capital investment: $
ID: 2381267 • Letter: 1
Question
1. You have the following info. on a potential investment:
capital investment: $279,000
estimated useful life: 3yrs
estimated salvage value: 0
estimated annual net cash inflow: $120,000
required rate of return: 12%
what is the net present value of the investment?
a.$120,000
b.$18,220
c.$(184,586)
d.$288,220
2. you have the following info. on a potential investment:
Capital investment: $100,000
estimated useful life: 3yrs
estimated salvage value: 0
estimated net cash inflow
Year1:$50,000
Year2:$47,000
year3:$44,000
required rate of return: 10%
what is the net present value of the investment?
a.$16,882
b.$117,356
c.$17,356
d.$47,000
3. If you want to have $15,000 at the end of each year for 10 years, and tou know you cam get 8% interest, what amount do you need to invest now?
a.$32,384
b.$6,948
c.$100,651
d.$217,298
4. If you want to have $10,000 at the end of each year for 11 years, and you know you can get 6% interest, what amount do you need to invest now?
a.$18,983
b.$5,268
c.$149,716
d.$78,869
Explanation / Answer
1 d
2 c
3 c
4 a
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.