Determine the approximate value of investment

Reference no: EM1350678

LED Computer Electronics is considering an investment that will have cash flows of $5,000, $6,000, $7,000 and $10,000 for years 1 through 4. What is the approximate value of this investment today if the appropriate discount rate is 9% per year?
$22,250
$30,520
$22,120
None of the above

You deposited $3,000 in your bank account today. An increase in which of the following will increase the future value of your deposit assuming that all interest is reinvested? Assume the interest rate is a positive value. Select all answers that apply:
interest rate
initial amount of your deposit
frequency of the interest payments
length of the investment period

If you borrow $50,000 today at 10% interest for eight years. How much of your second payment will be applied towards the principal of the loan?
$5,000
$4,372
$4,809
can not be determined with the information given

Reference no: EM1350678

Questions Cloud

Illustrate the effect of captial formation by production : Illustrate the effect of captial formation by comparing the production possibilty curves, at the present time and ten years in the future, for two economies.

Diagnose a companys financial condition : What types of analysis can managers perform to help them diagnose a company's financial condition?

Methods of evaluating performance : Describe methods of evaluating performance to increase productivity and profitability. List the characteristics of control systems

Strategic advantages voip brings to businesses : Write down some of the strategic advantages the VoIP brings to businesses that adopt it? Prior, voice and data networks were separate and typically maintained by separate groups.

Determine the approximate value of investment : LED Computer Electronics is planning an investment that will have cash flows of $5,000, $6,000, $7,000 and $10,000 for years one through four.

Drawing on current business publications : Discuss how the two cases Microeconomic influences on McDonald's in China. Drawing on current business publications, find some update facts for each case that support this theme.

Control systems in nonprofit organizations : Control systems in nonprofit organizations will never be as highly developed as in profit-seeking organizations. Do you agree? Explain.

Explain the functions of management : There are six functions of management. Understanding your organization, or one of which you are familiar

What is electric field strength at the center of leff ring : A bag of cement of weight 375 N hangs from three wires as suggested in Figure P5.18. Two of the wires make angles θ1 = 55.0° and θ2 = 25.0° with the horizontal. If the system is in equilibrium, find out the tensions in the wires.

User Account

All Pages