Question
Explain all questions using excel in the most detailed way, please. Question 10 If we make an investment of $25000 today, how long will it
If we make an investment of $25000 today, how long will it take for the investment to grow to $75,000 at an annual interest rate of 9%?
a.14.20 Years
b.12.75 Years
c.13.88 Years
d.17.51 Years
Question 14
Hilton Hotels is planning to invest in a hotel that costs $200,000. The cash inflows from the hotel will be $40,000, $50,000, and $70,000 over the next three years. The discount rate is 15%. What is the NPV of this investment?
a.-$81,384.07
b.$80,294.07
c.$82,563.82
d.-$89,763.82
Question 17
Walgreens invests $200,000 in a prroject on April 1, 2014. The project returns $42,000 on August 8, 2014, $62,300 on September 21, 2014, $52,000 on January 30, 2015, and $78,000 on May 16, 2015. Calculate the internal rate of return.
a.29.08%
b.-42.71%
c.28.12%
d.23.93%
Question 19An investment costs $10,000 at the beginning of the year (January 1). The investment generates cash inflows of $3,000 for each of 5 years at the end of the year (December 31). Which of the following pairs of values would best fit the blanks in the statement: the NPV is $___ and the IRR is ___% for the investment. (Note that the discount rate is not given).
a.$0, 15.24%
b.$52, 27.13%
c.$520, 0%
d.$0, 19.24%
Question 20
Allen wants to open a savings account. He will transfer $40,000 from another account to the savings account today. After that, he will deposit $1,000 every month to the savings account. If the annual interest rate is 3.2%, what will be the account balance in his savings account after 5 years?
a.$112,653.52
b.$123,877.44
c.$123,877.23
d.$111,903.31
Question 21
Alison Inc. is considering an investment in a hotel that costs $200,000. The cash inflows from the hotel will be $40,000, $50,000, and $70,000 over the next three years. The discount rate is 15%. What is the NPV of this investment?
a.-$81,384.07
b.$93,984.07
c.$96,563.82
d.-$77,563.82
Question 22
Peter will retire after 15 years and he wants a balance of $100,000 in his account after he retires. If the annual interest rate is 8%, how much does Peter need to deposit today? (Assume the account presently has a zero balance).
a.$26,936.28
b.$42,573.12
c.$31,524.17
d.$72,363.28
Question 24
Jiayu deposits $1,000 when she opens a savings account. If she deposits $500 every two months and the annual interest rate is 2%, how much will she have in her account after 4 years?
a.$24,964.48
b.$12,471.44
c.$13,554.59
d.$14,253.65
Question 25
Juba Inc. is investing $1120 in a project. If the rate is 8.1%, what is the net present value of the project if the company gets cash inflows of $100 each year for the first five years and $1180 for the sixth year?
a.$17.70
b.($41.64)
c.$52.55
d.($39.55)
Question 26
Project A requires an investment of $30,000 at the beginning of year 1, and has returns of $8,000, $5,000, $20,000, $-5,500, and $10,000 at the end of each year for five years. Project B requires $33,000 at the beginning of year 1, and has returns $12,000, $-5,000, $11,000, $9,500, and $20,000 at the end of each year for five years. What is the total NPV of the two projects if the discount rate is 8%?
a.($333.91)
b.($3,151.02)
c.$2,817.11
d.$3,484.93
Question 29
Gladys Inc. is launching a new project. The project has a duration of 10 years. The initial project costs are $300,000. Annual revenues are expected to be $32,000 each year. If the discount rate is 10%, what is the present value of the project?
a.$111,033.85
b.-$103,373.85
c.$196,626.14
d.-$153,626.14
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