What is the npv of the investment opportunity

Assignment Help Basic Computer Science
Reference no: EM131206207

You have been offered a unique investment opportunity. If you invest$15,000 today, you will receive $ 750 one year from now,$2,250 two years from now, and $ $15,000 ten years from now.

a. What is the NPV of the investment opportunity if the interest rate is 10% per year? Should you take the opportunity?

b. What is the NPV of the investment opportunity if the interest rate is 6% per year? Should you take the opportunity?

Reference no: EM131206207

Questions Cloud

Evaluate strengths of us military during military encounters : Evaluate the strengths of the U.S. military during major military encounters. Evaluate differences in the U.S. military during times of peace and war.
Effective annual rate : The managers of Bank B want the rate on its money market accoun toequal Bank A's effective annual rate, but interest is to becompounded on a monthly basis. What simple, or quoted, rate mustBank B set?
Estimate the proportion of complaints : estimate the proportion of complaints the Better Business Bureau is able to settle. Assume the population proportion of complaints settled for new car dealers is .75, the same as the overall proportion of complaints settled in 2008.
Saving for retirement : You are 21 years old and decide to start saving for your retirement. You plan to save $4,500 at the end of each year(so the first deposit will be one year from now), and will make the last deposit when you retire at age 69. Suppose you earn 8% pe..
What is the npv of the investment opportunity : a. What is the NPV of the investment opportunity if the interest rate is 10% per year? Should you take the opportunity? b. What is the NPV of the investment opportunity if the interest rate is 6% per year? Should you take the opportunity?
Savings account on every birthday : Your grandmother has been putting $1,000 into a savings account on every birthday since your first(that is, when you turned 1). The account pays an interest rate of 7%. How much money will be in the account on your 18th birthday immediately after..
How can perceptions of supervisor power effect effiiciency : How can the perceptions of a supervisor's power effect effiiciency and productivity in an organization?Give at least two examples with which you are familiar.
What is the induced voltage across the coil : If the flux linking a coil of 50 turns changes at a rate of 0.085 Wb/s, what is the induced voltage across the coil?
Discuss the dividend policy : Revisit the company McDonalds. Using the annual report and other sources such as a 10k or 10q's, discuss the dividend policy of your company. Answer the following questions as part of your response:

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Identifies the cost of computer

identifies the cost of computer components to configure a computer system (including all peripheral devices where needed) for use in one of the following four situations:

  Input devices

Compare how the gestures data is generated and represented for interpretation in each of the following input devices. In your comparison, consider the data formats (radio waves, electrical signal, sound, etc.), device drivers, operating systems suppo..

  Cores on computer systems

Assignment : Cores on Computer Systems:  Differentiate between multiprocessor systems and many-core systems in terms of power efficiency, cost benefit analysis, instructions processing efficiency, and packaging form factors.

  Prepare an annual budget in an excel spreadsheet

Prepare working solutions in Excel that will manage the annual budget

  Write a research paper in relation to a software design

Research paper in relation to a Software Design related topic

  Describe the forest, domain, ou, and trust configuration

Describe the forest, domain, OU, and trust configuration for Bluesky. Include a chart or diagram of the current configuration. Currently Bluesky has a single domain and default OU structure.

  Construct a truth table for the boolean expression

Construct a truth table for the Boolean expressions ABC + A'B'C' ABC + AB'C' + A'B'C' A(BC' + B'C)

  Evaluate the cost of materials

Evaluate the cost of materials

  The marie simulator

Depending on how comfortable you are with using the MARIE simulator after reading

  What is the main advantage of using master pages

What is the main advantage of using master pages. Explain the purpose and advantage of using styles.

  Describe the three fundamental models of distributed systems

Explain the two approaches to packet delivery by the network layer in Distributed Systems. Describe the three fundamental models of Distributed Systems

  Distinguish between caching and buffering

Distinguish between caching and buffering The failure model defines the ways in which failure may occur in order to provide an understanding of the effects of failure. Give one type of failure with a brief description of the failure

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