How much should you pay for such an investment

Assignment Help Finance Basics
Reference no: EM132056917

Question: A profitable business venture promises to pay investors a monthly cash return of $1,900 for the next seven years. Having studies other investment alternatives, you believe that a reasonable return on your investment should be 12 percent compounded monthly. How much should you pay for such an investment?

Reference no: EM132056917

Questions Cloud

Calculate the npv of the project in given case : Profound Products, Inc., is planning to market a new banana peeler. Projected sales are $80,000 per year for the first two years, declining at a rate of 25%.
How much will her savings be worth 35 years from now : Angela expects to save $500 a year and earn an average annual return of 5.2 percent. How much will her savings be worth 35 years from now?
The main principles of health informatics : Demonstrate your comprehension of the main principles of health informatics, as well as the primary applications of health informatics.
Determine next year budget : How does the percentage of sales approach help them to determine their next year's budget? Why is that important?
How much should you pay for such an investment : A profitable business venture promises to pay investors a monthly cash return of $1,900 for the next seven years. Having studies other investment alternatives.
What are the annual payments on a loan : What are the annual payments on a loan of $350,000 to be repaid over 10 years at 8%?
Category of assets and liabilities or equity : Does dividends paid to shareholders fall under the category of assets and liabilities or equity?
Prepare an income statement for the past year : Prepare an income statement for the past year in the variable costing format. Enter all amounts as positive numbers
What is the profitability index of a project : What is the profitability index of a project with the following cash flows if the discount rate is 16 percent? Enter your answer rounded off to two decimal.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the eps figure for 2008

Pizza A had earnings after taxes of $600,000 in the year 2008, and 300,000 shares outstanding. In year 2009, earnings after taxes increased to $750,000, and 25,000 new shares were issued for a total of 325,000 shares. What is the EPS figure for 20..

  The standard deviation of investment as return is 10 while

the standard deviation of investment as return is 10 while the standard deviation of investment b is 5. based solely on

  Monthly payment to citizens financial bank

What would be her monthly payment to Citizens' Financial Bank? (Do not round intermediate calculations. Round your answer to the nearest cent.

  Determine use integer programming versus linear programming

I understand that Integer programming uses whole number, and linear programming does not. However, what are some examples of best situations to use integer programming versus linear programming? Best situations to use linear programming versus intege..

  If he can earn 6 percent apr with monthly compounding on

johnson needs to have 60000 in 8 years. to reach the goal he intends to make monthly contributions to a savings plan.

  What is dybvig cost of equity capital

If the risk-free rate is 5.00 percent and the expected return on the market is 9 percent, what is Dybvig's cost of equity capital?

  A project is guaranteed to add value for a firm''s owners

A project is guaranteed to add value for a firm's owners

  What is the expected return on the portfolio

You own a portfolio that is 40 percent invested in Stock X, 25 percent in Stock Y, and 35 percent in Stock Z. The expected returns on these three stocks are 11 percent, 20 percent, and 16 percent, respectively. What is the expected return on the p..

  How many bonds must be issued to net

If the face value of each bond is $1,000, how many bonds must be issued to net the $75 million? Assume that the firm cannot issue a fraction of a bond.

  Create proforma financial statements

What is the sale forecasting method to create proforma financial statements?

  What is the beta of the portfolio

You have decided to sell Creative Crafts for $4,000 and to use the proceeds to buy $4,000 of International Steel stock with a beta of 2.5.

  Determine the amount you must accumulate

Determine the amount you must accumulate

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd