9. A four-year project requires $1,000,000 as the first cost and brings $2,000,000 at the end of the 4th year. If expected annual inflation over this period is 5%, what is the real IRR of this project?
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- 7. Find the IRR of an investment of 50,000 ETB, whose receipts in the next four years are ETB 15,000, ETB 15,00o0, ETB 20,000 and ETB 20,000 respectively. Is the investment viable if the minimum attractive rate of return (MARR) is 10% per annual?Revenue from a project is expected to be $7000 per year in real terms (i.e. an identical project would earn $7000 in revenue today). If the expected inflation rate is 2.4%, what is the nominal value of the annual revenue (the actual number of dollars received) 8 years from now? Question 4Answer a. $8462 b. $8666 c. $8264 d. $8070klp.4 Determine the break-even year for a project with an initial investment of $200,000, annual revenues of $60,000, and annual expenses of $20,000, factoring in an annual inflation rate of 2% on revenues and 3% on expenses. Use a discount rate of 5% for your calculation
- . If you invest $10,000 now into a project that will yield net revenues of $1.327 at the end of each year for 12 years, what is the internal rate of return (IRR) of your investment? O a 18% Ob 10% O. 16% Od. 8% Oe 15%A four-year project requires $1 000 000 as the first cost and brings $2 000 000 at the end of the fourth year. If expected annual inflation over this period is 5%, what is the real IRR of this project? Answer should be 13.3%, I am just not sure how...A investment opportunity requires an investment today of $48.91 and then in five years, will generate a revenue flow of $24 with prob. 0.5 and $84 with prob. 0.5. What is the internal rate of return for this project? 2% 4% 6% 8%
- An investment project costs $21,500 and has annual cash flows of $6,500 for 6 years. If the discount rate is 15 percent, what is the discounted payback period? Select one: a. 5.71 b. 3.91 c. 4.21 d. 4.91 e. 5.91A company is considering an investment that will cost $759,000 and have a useful life of 6 years. The cash flows from the project are expected to be $450,000 per year in the first two years then $170,000 per year for the last 4 years. If the appropriate discount rate is 16.0 percent per annum, what is the NPV of this investment (to the nearest dollar)? Select one: O a. $316870 O b. $321617 O c. $1834870 O d. $439045If you invest $10,000 now into a project that will yield net revenues of $1327 at the end of each year for 12 years, what is the internal rate of return (IRR) of your investment? O a 18% Оь. 10% Ос. 16% Od. 8% O e. 15%
- The present amount needed to generate an annual income of $50,000 for 20 years if the expected rate of return is 7% is closest to: A. $2,049,800 B. $1,000,000 C. $650,000 D. $529,700 E. $258,420 b) A loan amount of $185,000 is to be paid off by equal monthly payments over a 30-year period with an annual interest rate of 4.5%, compounded monthly. The required monthly payment will be equal to: A. $1,207.64 B. $937.37 C. $693.75 D. $513.89 E. $8,325What is the present value (PV) of an investment that pays $80,000 every year for four years if the interest rate is 6% APR, compounded quarterly? A. $331,614 B. $276,345 C. $359,248 D. 303, 979A project has an initial cost of $18,400 and expected cash inflows of $7,200, $8,900, and $7,500 over Years 1 to 3, respectively. What is the discounted payback period if the required rate of return is 11.2%? Select one: A. 2.57 years B. Never C. 2.45 years D. 2.87 years E. 2.31 years