Question
Which assertion is true? Person Amount invested Time that funds are invested Annual return on investment Olga 16,294 dollars In 3 year(s) from today 11.1
Which assertion is true?
Person | Amount invested | Time that funds are invested | Annual return on investment |
Olga | 16,294 dollars | In 3 year(s) from today | 11.1 percent |
Jabari | 29,784 dollars | In 6 year(s) from today | 5.96 percent |
Eli | 33,268 dollars | In 9 year(s) from today | 7.97 percent |
Jabari will have more money in 12 years than Olga will have in 12 years and Eli will have more money in 12 years than Olga will have in 12 years | ||
Olga will have more money in 12 years than Jabari will have in 12 years and Olga will have more money in 12 years than Eli will have in 12 years | ||
Jabari will have more money in 12 years than Olga will have in 12 years and Olga will have more money in 12 years than Eli will have in 12 years | ||
Olga will have more money in 12 years than Jabari will have in 12 years and Eli will have more money in 12 years than Olga will have in 12 years |
2. What is X if X equals the value of investment A plus the value of investment B? Investment A is expected to pay 16,200 dollars in 5 year(s) from today and has an expected return of 11 percent per year. Investment B is expected to pay 19,500 dollars in 8 year(s) from today and has an expected return of 17.01 percent per year.
3.
Blue Eagle Media just bought supplies from Yellow Sand Banking. Blue Eagle Media has been offered the 3 possible payment options described in the table. If the discount rate is 15.25 percent, which of the assertions is true?
Option | Terms of payment (amount and timing) from Blue Eagle Media to Yellow Sand Banking |
A | 22,493 dollars in 1 year(s) |
B | 52,927 dollars in 7 years |
C | 70,347 dollars in 9 years |
Blue Eagle Media should prefer option B more than option A, and Blue Eagle Media should prefer option C more than option A | ||
Blue Eagle Media should prefer option B more than option A, and Blue Eagle Media should prefer option A more than option C | ||
Blue Eagle Media should prefer option A more than option B, and Blue Eagle Media should prefer option C more than option A | ||
Blue Eagle Media should prefer option A more than option B, and Blue Eagle Media should prefer option A more than option C |
4.
Orange Valley Recycling just bought supplies from Red Royal Consulting. Orange Valley Recycling has been offered the 3 possible payment options described in the table. If the discount rate is 13.98 percent, which of the assertions is true?
Option | Terms of payment (amount and timing) from Orange Valley Recycling to Red Royal Consulting |
A | 16,468 dollars in 3 year(s) |
B | 27,614 dollars in 7 years |
C | 46,682 dollars in 11 years |
Red Royal Consulting should prefer option A more than option B, and Red Royal Consulting should prefer option C more than option A | |||||||||||||||||
Red Royal Consulting should prefer option B more than option A, and Red Royal Consulting should prefer option A more than option C | |||||||||||||||||
Red Royal Consulting should prefer option B more than option A, and Red Royal Consulting should prefer option C more than option A | |||||||||||||||||
Red Royal Consulting should prefer option A more than option B, and Red Royal Consulting should prefer option A more than option C
5.Sasha owns two investments, A and B, that have a combined total value of 55,100 dollars. Investment A is expected to pay 24,300 dollars in 5 year(s) from today and has an expected return of 12.01 percent per year. Investment B is expected to pay X in 4 years from today and has an expected return of 17.58 percent per year. What is X, the cash flow expected from investment B in 4 years from today?
6. Fairfax Paint is planning to sell its McLean, Springfield, and Falls Church stores in T years from today. The firm expects to sell its McLean store for a cash flow of H dollars, its Springfield store for a cash flow of H dollars, and its Falls Church store for a cash flow of M dollars. The cost of capital for the Falls Church store is Q percent, the cost of capital for the Springfield store is W percent, the cost of capital for the McLean store is Q percent, H > M > 0, Q > W > 0; and T > 0. The cash flows from the sales are the only cash flows associated with the various stores. Based on the information in the preceding paragraph, which one of the following assertions is true?
|
Step 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