If someone invested 4,200.00 in a computer and divided it by what they expected the yearly return to be which is $1500.00 what is 4,200.00 divided by $1,500.00 in dollar amount also what is the estimated amount of profit in a 3 year period (please give dollar amount) thanks
If someone invested 4,200.00 in a computer and divided it by what they expected the yearly...
How do the payback and accounting rate of return methods work? If the amount invested is $100,000 and the yearly expected cash flows are $20,000 per year, what is the payback period? If the amount invested is $100,000, the residual value is $20,000 and the average annual operating income is $10,000, what is the ARR? What is the time value of money? Using the tables provided in Appendix A, if the future value of an investment five years from now...
Gorman Inc. has invested $140,000 in a new machine, which is expected to save $28,400 cash per year over its estimated life of 10 years. What do they expect as the time-adjusted rate of return, to the nearest .5%?
Mr. Haris, 32 years and Mrs Tini aged 30 years has been married for 5 years now. They have two kids, Arif age 4 and Amira, 1 year. The spouse is planning to send their kids to further their study to a local university after completing tertiary education at the age of 18. Taking into consideration the inflation rate, education cost for the next 14 years is estimated to be amounting RM90,000 which will include the education fee and living...
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5. A private investment pool contains $750,000, all of which is to be invested in three kinds of securities. The kinds are common socks, expected to yield 2.20% per year, U.S. Treasuries, expected to yield 0.90 % per year, and municipal bonds, expected to yield 1.20% per year. The amount in Treasures is to be equal to the sum of the amounts in the other two categories. The return on the total amount is to be 1.0 %...
You own a portfolio that has 60% invested in Stock X and 40% invested in Stock Y. Assume the expected returns on these stocks are 13% and 18%, respectively. What is the expected return on the portfolio? A portfolio has a beta of 0.6. The risk-free rate is 2% and the expected return on the market is 12%. What is the expected return on the portfolio? A bond has a $1,000 par value, 10 years to maturity, a 5% coupon...
A company invested $150,000 in a new machine expecting the following schedule returns on their investment. $12,000 at the end of year 3 and increasing by $2000 starting year 4 through year 10.Starting year 11through 20,the returns drop to $8000 per year. Maintenance costs are estimated at $1000 per year for the first 10 years, and $1500.00 per year for years 11 through 20. The salvage value of the machine is $7500. a) Draw a cash flow for this project....
The constant growth valuation formula has dividends in the numerator. Dividends are divided by the difference between the required return and dividend growth rate as follows: Pˆ0P̂0 = = D1(rs − gL)D1rs − gL Which of the following statements is true? Increasing dividends may not always increase the stock price, because less earnings may be invested back into the firm and that impedes growth. Increasing dividends will always decrease the stock price, because the firm is depleting internal funding resources....
Time Value of Money in Personal Finance Mr. Haris, 32 years and Mrs Tini aged 30 years has been married for 5 years now. They have two kids, Arif age 4 and Amira, 1 year. The spouse is planning to send their kids to further their study to a local university after completing tertiary education at the age of 18. Taking into consideration the inflation rate, education cost for the next 14 years is estimated to be amounting RM90,000 which will...
1. The formula used to measure the ratio of sales to assets is _____. sales divided by average total assets sales divided by total assets sales divided by average current assets sales divided by current assets 2. The following information was taken from the financial statements of Lea Corporation for December 31, Year 2 and Year 1: Year 2 total sales: $5,000,000 Year 2 total assets: $450,000—beginning balance, $600,000—ending balance Year 1 total sales: $3,500,000 Year 1 total assets: $565,000—beginning...
Average Rate of Return, The expected period of time that will elapse between the date of a capital expenditure and the complete recovery in cash (or equivalent) of the amount invested.Cash Payback Period, A method of analysis of proposed capital investments that focuses on the present value of the cash flows expected from the investments.Net Present Value Method for a Service Company Spanish Peaks Railroad Inc. is considering acquiring equipment at a cost of $576,000. The equipment has an estimated...