Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are presented with an investment opportunity. For $10,000 today, you will receive $3,000 at the end of year for five years. If a comparable
You are presented with an investment opportunity. For $10,000 today, you will receive $3,000 at the end of year for five years. If a comparable opportunity returns 8%, what is the NPV of this investment rounded to the nearest dollar? a. $5000 b. S2000 O c. $1978 d. $2412 You wish to establish a scholarship fund which gives $1,000 a year forever. If the principal can earn 4% per year, how much is needed to establish the fund? a. $40.000 b. S14,000 c. $25,000 d. $33,333 Question 18 An investment is expected to distribute S8 next year and the distribution is expected to increase by 2% each year. If the appropriate discount rate is 6%, what is the present value of the investment? Not yet answered Marked out of 7.50 O a. $400 b. S133.33 Flag question O c. $125 d. $200 What is the rate of return of an investment product which costs $25,000 and returns $2,000 at the end of each year for 20 years? Question 19 Not yet answered a. 1.75% Marked out of 7.50 b.5.62% Flag question C. 2.50% d. 4.96%
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