What is the expected rate of return on this investment

Assignment Help Accounting Basics
Reference no: EM132726626

Problem - An investment costs $465 now and is expected to produce cash flows of $100 at the end of each of the next 4 years, plus an extra lump-sum payment of $200 at the end of the fourth year. What is the expected rate of return on this investment?

Reference no: EM132726626

Questions Cloud

Emerging enterprise network applications : Research at least two articles on the topic of emerging enterprise network applications.
How much interest would the firm have to pay : How much interest would the firm have to pay in a 30-day month? What would the interest be if the bank used a 365-day year
Describe the command and control process : Did they follow the ICS system? What were some mistakes? Make some recommendations. Describe the Command and Control Process. Describe the role of the Incident
What is e-commerce and mobile technology : Your company is experiencing decline in business because of competition. Explain what is E-Commerce and Mobile Technology.
What is the expected rate of return on this investment : An investment costs $465 now and is expected to produce cash flows of $100 at the end of each of the next 4 years, What is the expected rate of return
What is the evidence for the existence of ghosts : What are similarities and differences between ghosts in different cultures? What is the evidence for the existence of ghosts? What are their various appearances
What is the future value of cash flow stream : What is the future value of this cash flow stream: $100 at the end of 1 year, $150 after 2 years, and $300 after 3 years
What information about community activities should highlight : What are the most interesting aspects of this community's use of language and literacy practices, especially for your target audience?
What is the most you should pay for the annuity : What is the most you should pay for the annuity? If the payments began immediately, then how much would the annuity be worth

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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