Assume you invest $6,700 today in an investment that promises to return $20,809 in exactly 10 years.

Fantastic news! We've Found the answer you've been seeking!

Question:

a. Use the present-value technique to estimate the IRR on this investment.

b. If a minimum annual return of 20% is required, would you recommend this investment?

Related Book For answer-question

Fundamentals of Investing

ISBN: 978-0133075359

12th edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

See More Books

Posted Date: Feb 02, 2024 06:55 AM

See More Questions

Assume you invest $5,000 today in an investment that promises to return $9,000 in exactly 10 years. a. Use the present value technique to estimate the yield on this investment. b. If a minimum return...
Lachlan is going to invest NZ$4,000 today in an investment that promises to return NZ$9,000 in exactly 10 years. a. Use the present value technique to estimate the IRR of his investment. b. If...
Assume you invest $4,000 today in an investment that promises to return $9,000 in exactly 10 years. a. Use the present value technique to estimate the IRR on this investment. b. If a minimum annual...
Can HRM specialists rise to the challenge of promoting standardisation while also remaining the guardians of national culture in an organisation?
Suppose that you take 1000 simple random samples from a population and that, for each sample, you obtain a 95% confidence interval for an unknown parameter. Approximately how many of those confidence...
Use the addition formulas to derive the identities. sin(x TT 2 = -cos X
Go to the St. Louis Federal Reserve FRED database, and find data on real GDP (GDPC1), potential GDP (GDPPOT), and the unemployment rate (UNRATE) from 1960 to the most recent period. For the...
Belton Distribution Company is issuing a $1,000 par value bond that pays 7 percent annual interest that is paid semiannually and matures in 15 years. Investors are willing to pay $958 for the bond....
A center that has been in operation for five years needs Group of answer choices only an operating budget for the upcoming year only a long-range financial plan that includes a 10 year projection on...
What is a companies TIE Ratio if there net income is $7175 there interest expense is ($1128) and there income tax expense is 1894?
a)Describe the process of Auditing in stores b)Explain the importance of inspection of stores c)Identify and explain some of the reasons why a breakdown may occur in audit process
If y + xy-3x = 1, and dz dt dy = -3 when = 3 and y = 2, what is dt dx dt when z = 3 and y=2?
1 . Mr. Encina is a government employee. He is not engaged in business nor has any other source of income other than his employment. He earned a total taxable income of P854,000. How much is the...
1 .Mr. and Mrs. Willet will file their 2022 tax return as married filing joint. They have an AGI of 21,000, tax exempt income of 500, and social security benefits of 18,000 for the year. What amount...
If f(0)=-csc0-sin 0, show that f'(0) = cot 0 cos
What innovative approaches are organizations employing to enhance the procurement process and streamline supply chain operations?
18 IVT e(-x) = In x Use the Intermediate Value Theorem to verify there is a solution on the interval (1,2).
Ann hires a nanny to watch her two children while she works at a local hospital. She pays the 19 year-old nanny $125 per week for 48 weeks during the current year. a. What is the employers portion of...
What is ratio analysis? Describe the contribution of ratio analysis to the study of a companys financial condition and operating results.
Differentiate between the financial advice you would receive from a traditional investment adviser and one of the new online planning and advice sites. Which would you personally prefer to use, and...
You invested in the no-load OhYes Mutual Fund 1 year ago by purchasing 1,000 shares of the fund at the net asset value of $25.00 per share. The fund distributed dividends of $1.50 and capital gains...
Using Mendels data from the experiment in Figure 2.8, conduct a chi square test to determine if the data agree with Mendels law of independent assortment. Mendels data: THE DATA P cross F1 generation...
On rare occasions, an organism may have three copies of a chromosome and therefore three copies of the genes on that chromosome (instead of the usual number of two copies). The alleles for each gene...
Explain how the miR-200 family of miRNAs behave as tumorsuppressor genes. What happens when their expression is blocked or decreased?

Assume you invest $6,700 today in an investment that promises to return $20,809 in exactly 10 years.

Question:

Expert Answer:

IRR Estimation and Investment Recommendation a Estimating IRR using Present Value Technique The Inte... View the full answer

Fundamentals of Investing

Students also viewed these accounting questions