What will investment be worth

Assignment Help Financial Management

Reference no: EM131848251

1. A $25 investment returns $27.50 at the end of one year with no risk. Given this, you know that the NPV:

is zero at any given discount rate.

is negative if the required return is less than 10 percent.

equals 1.0 if the required return is 10 percent.

is zero if the required return is equal to 10 percent.

must be positive at any given discount rate.

2. Lucas invested $4,500 at 6.2 percent, compounded continuously. What will his investment be worth after 15 years?

$15,557.78

$9,240.03

$11,405.29

$12,308.84

$8,685.00

Reference no: EM131848251

Questions Cloud

What is the expected growth rate of the dividends : what is the expected growth rate of the dividends?

Compute the discounted payback statistic for project : Compute the discounted payback statistic for Project C if appropriate cost of capital is 6 percent and maximum allowable discounted payback period is 3 years.

Investors anticipate for this company dividends : what is the growth rate that investors anticipate for this company's dividends?

What operating cash flow will be required each year : What operating cash flow will be required each year for the project to return 16 percent in nominal terms?

What will investment be worth : Lucas invested $4,500 at 6.2 percent, compounded continuously. What will his investment be worth after 15 years?

What is the current yield for kamino corporation bonds : What is the CURRENT YIELD for Kamino Corporation's bonds ?

Calculate the fraction of your salary to be saved : calculate the fraction of your salary to be saved. The first tuition payment is at the end of year 15.

What do the rating agencies think about the debt rating : How would you rate the country risk of the U.S.? What do the rating agencies think about the debt rating of the U.S.?

Rate of return that investors require for investing in stock : This growth rate is an accurate estimate of firm's future dividend growth rate. what is the rate of return that investors require for investing in this stock?

User Account

All Pages