Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help with these questions. Due date February 2. Thank you : Task 1. Please calculate the rate of return (annual compound interest rate)
I need help with these questions. Due date February 2. Thank you :
Task 1. Please calculate the rate of return (annual compound interest rate) for the investment: 1000 dollars of investment in present time that yields 250, 200, 150, and 100 dollars in the end of first, second, third, and fourth year with salvage value of 500 dollars in the ens of fourth year. Please explain your work in detail. C=1000 I=250 I=200 I=150 I=100 0 1 2 3 4 C: Cost, I: Income, L: Salvage Value Task 2. Please Calculate the annual equivalent payments (end of the year, 1 to 4) for the investment over the 4 year life with nominal 15% interest rate compounded annually. With 1500 dollars investment at present time, income of 600, 500, 400, and 300 dollars in the end of first, second, third, and fourth year plus resale value of 1200 dollars in the end of fourth year. Please explain your work in detail. C=1,500 I=600 I=500 I=400 I=300 0 1 2 3 4 C: Cost, I: Income, L: Salvage Value Please be careful about the signs. Costs have negative but income and Salvage Value have positive signsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started