Question
This task is individual Word File describing the methods and tools you use for reaching the answers. You can also write by hand and submit
- This task is individual
- Word File describing the methods and tools you use for reaching the answers. You can also write by hand and submit a picture of your task.
- I invested on January 1st 2015 10.000 in a financial product that is giving a compounded interest with payments on a quaerterly basis.
On January 1st 2023 I will get back my investment together with the interests, and I know that I will receive 42,871.8.
It was a good investment, but I cant remember the rate.
Could you tell me?
- A company has the following cash flow:
Period C0= -1000
Period C1= +500
Period C2= -100
Period C3= +600
Should the company invest in the project if cost of capital is 5%?
.
3.- You own a computer that will generate 2.000.000 bitcoins return over the coming year. The cost of producing the bitcoins is very small, as the energy consumed is generated with solar panels. The computer is anyhow a bit slower every year, and the volume of bitcoins produced is expected to decline at 3% per year. The discount rate is 15%. What is the PV of the computer and the bitcoin cashflows it produces?
4.- The expected dividend per share of a company is 2000 euros, per year and forever. Assuming a growth rate of 2% and an interest rate of 9%, which is the present value of the share?
5- Your company has the opportunity to invest in a project that will generate cash-flows of 13,000 per year, starting in 6 years, and for 10 years.
Calculate how much you should invest today if you want to get a profitability of 11%
Formailities
- Font: Arial 12,5 pts.
- Text alignment: Justified.
- The in-text References and the Bibliography have to be in Harvards citation style.
- NO SOFTWARE SOLVING TOOLS ALLOWED
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