What is the expected rate of return on this investment

Assignment Help Financial Management
Reference no: EM131606884

Your father paid $8,000 for an investment that is promised to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $8,000 at the end of the 5th year. What is the expected rate of return on this investment?

Reference no: EM131606884

Questions Cloud

What is the bond current yield and yield to maturity : What is the bond’s current yield and yield to maturity (YTM)? Assume semi-annual interest payments.
What rate of return is built into the annuity : Your boyfriend just won the Texas lottery. What rate of return is built into the annuity?
Supplemental employer and sponsored pension plans : Differentiate among the types of basic and supplemental employer-sponsored pension plans.
What would be the mutual fund account value : Were you to invest $50 each month into a mutual fund which averaged an 11% annual return, what would be the mutual fund account value after 12 years?
What is the expected rate of return on this investment : What is the expected rate of return on this investment?
What is the stock expected price five years from now : Connectix Inc's stock currently sells for $35.25 per share. What is the stock's expected price 5 years from now?
By selling treasury bills or bonds to the general public : By selling treasury bills or bonds to the general public, the Federal Reserve Bank
How much tax do you owe on the capital gain : You purchased 100 shares of TAC for $50 per share four months ago. how much tax do you owe on the capital gain?
What has been your average annual return over the four years : What has been your average annual return over the four years?

Reviews

Write a Review

Financial Management Questions & Answers

  The 2010 balance sheet of marias tennis shop inc showed

the 2010 balance sheet of marias tennis shop inc. showed long-term debt of 3.1 million and the 2011 balance sheet

  How much should you invest in the risk free asset

How much should you invest in the risk free asset?

  Another utilization of cash flow analysis

Another utilization of cash flow analysis is setting the bid price on a project. To calculate the bid price, we set the project NPV equal to zero and find the required price. Thus the bid price represents a financial break-even level for the project...

  Capital purchases and expansion plans

Increase in demand for funds as well as an increase in inflation will put upward pressure on interest rates and businesses will also reign in on capital purchases and expansion plans in order to keep their operating costs in line.

  Realized return is known as holding period yield

The YTM on a bond is the interest rate you earn on your investment if interest rates don’t change.your realized return is known as the holding period yield (HPY

  Explain how you as an individual can act as surplus

Explain how you as an individual can act as surplus and deficit unit at the same time?

  Net present value of a series of cash flows

Which element should NOT be taken into account when determining the net present value of a series of cash flows?:

  What is the npv of project

The sausage system will save the firm $69,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $9,000, which will be recouped at project end. If the tax rate is 34 percent and the discount..

  What will the cash flows for this project be

KADS, Inc., has spent $380, 000 on research to develop a new computer game. The firm is planning to spend $180, 000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $..

  What is the rate of return for this investment

What is the rate of return for this investment? Is the rate of return a positive or negative number?

  What happens to the coupon rate of a bond

What happens to the coupon rate of a bond that pays $80 annually in interest of interest rates change from 9% to 10%?

  Give an example of manipulation

Give an example of manipulation you have seen used in the workplace and suggest how that system might be restructured to be motivation instead.

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