What is the real rate of return on investment

Assignment Help Financial Management

Reference no: EM131929500

1. An investment today of $21,000 promises to return $10,000 annually for the next 3 years. What is the real rate of return on this investment if inflation averages 6% annually during the period?

2. What are four forms of credit enhancement?

3. What is the equivalent annual cost for a project that requires a $30,000 investment at time zero, and a $10,000 annual expense during each of the next 4 years, if the opportunity cost of capital is 10%?

Reference no: EM131929500

Questions Cloud

What will be the amount of the annual payment necessary : If the first payment is due one year from today, what will be the amount of the annual payment necessary

Compute the pension expenditures to be reported : Compute the pension expenditures to be reported in each of the following situations: The county contributed $5,000,000 to the pension plan

Why did reisner include the poem at the beginning of book : There's a section of a poem by Shelley, Ozymandias, opposite the title page of the book. Why did Reisner include this poem at the beginning of the book?

What is the fixed-cost expenditure for firm : What is the fixed-cost expenditure for a firm with a DOL of 4.5 that generates pretax profits of $1 million and has $600,000 in depreciation expense?

What is the real rate of return on investment : What is the real rate of return on this investment if inflation averages 6% annually during the period?

Market and book ratio-what is its p-e ratio : A company has an EPS of $3.45, a book value per share of $37.26, and a market/book ratio of 1.8x. What is its P/E ratio?

Discuss public health significance of the research question : What do you think the public health significance of the research question in this study was? Is it mostly of local significance or is there a global impact?

Assume that total revenue can increase : Assume that total revenue can increase by 12%, variable costs can decrease to 58% of sales, and fixed costs can decrease by 5% in an optimistic situation.

Find the interest rate needed for the sinking fund : Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding period is the same as the payment period.

User Account

All Pages