Question: How much would you be willing to pay for an
How much would you be willing to pay for an investment fund that is expected to generate $1,000 at the end of two years, $1,500 at the end of three years, and $2,000 at the end of four years if you wanted to earn 16% annual interest on your investment?
Answer to relevant QuestionsIf money is worth 12%, would you prefer receiving $200,000 now or $30,000 each year for the next 10 years?1. What is the value of each amount 10 years from now?2. What is today’s present value of each amount?3. How much ...If you were to sell a new car, and the terms of the agreement were that you received $5,000 as a down payment and three payments of $10,000 each year for the next three years, what would be the real purchase price of the car ...How is the internal rate of return calculated?With the following information, calculate the project’s (1) Profit for the year, (2) Cash flow: operating profit ($200,000); capital cost allowance ($50,000); other expenses ($100,000); and income tax rate (40%).You have two options: to buy or to lease a video store.Option 1: PurchaseIf you want to make 25% on your money, should you buy the video store? To answer this question, calculate the following:1. Net present value2. ...
Post your question