Time value of money problems and rate of return problems

Assignment Help Financial Management
Reference no: EM131605843

Answer the following questions assuming the interest rate is 8 percent.

Time Value of Money Problems

Rate of Return Problems

i. An investment of $1,300 today returns $61,000 in 50 years. What is the internal rate of return on this investment?

j. An investment costs $750,000 today and promises a single payment of $11.2 million in 23 years. What is the promised rate of return, IPR, on this investment?

k. What return do you earn if you pay $22,470 for a stream of $5,000 payments lasting ten years? What does it mean if you pay less than $22,470 for the stream? More than $22,470?

l. An investment promises to double your money in five years. What is the promised IRR on the investment?

Reference no: EM131605843

Questions Cloud

Brand defined benefit pension plan : Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.4% × service years × final year's salary, payable at end of each yea
What is a swap and why is it off-balance-sheet : What is a swap? Why is it off-balance-sheet?
Groups occupying recognizable places of business-government : A unit that consists of individuals or groups occupying recognizable places of business, residence, government, or assembly is termed a(an)
Existing market price of the underlying financial instrument : For Call Options, the __________ the existing market price of the underlying financial instrument relative to the exercise price, ____________ option premium.
Time value of money problems and rate of return problems : An investment of $1,300 today returns $61,000 in 50 years. What is the internal rate of return on this investment?
What is firm cost of internal common equity : The common stock for the Bestsold Corporation sells for $57. What is the firm's cost of internal common equity?
The bank in order to negotiate loan : The McDonalds are at the bank in order to negotiate a loan to buy a farm where they can raise cows, horses, chickens sheep and plant spaghetti trees.
What is the company sustaniable growth rate : What is the companys sustaniable growth rate?
Calculate the monthly payment of principal and interest : Suppose a homeowner has an existing mortgage loan with these terms. Calculate the monthly payment of principal and interest (PI).

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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