# Finance

posted by .

Investment X offers to pay you \$6,000 per year for nine years, whereas Investment Y offers to pay you \$8,000 per year for six years. If the discount rate is 5 percent, Investment X has a present value of ? and Investment Y has a present value of ?. If the discount rate is 15 percent, Investment X has a present value of ? and Investment Y has a present value of ?

• Finance -

Assume a \$4,000 investment and the following cash flows for two alternatives.
Year InvestmentX Investment Y
1 \$1,000 \$1,300
2 800 2,800
3 700 100
4 1,900
5 2,000

a. Under the payback method, which investment should be chosen? (Show your work/analysis/calculations for each investment).

b. Why do other methods allow for a better analysis?

• Finance -

sdfg

## Similar Questions

1. ### FIN200- FV, PV and Annuity Due CP

I just want to know if anyone can help me in determining if I am on track with this assignment and if anyone can point out where I am wrong and how I need to fix it. I have already completed this assignment on my own and need someone …
2. ### Finance

An investment offers an expected dollar return of \$800 each year for years 1 through 5. If the interest rate is 12%, what is the present value of this investment?
3. ### finance

An investment offers to pay you a \$10,000 a year for five years. If it costs \$33,520, what will be your rate of return on the investment?
4. ### Finance

Omega Health Foundation is considering buying personal computers to install in each patient’s room. The cost of the investment will be \$1,400,000. It is expected that the technology will reduce nursing cost by \$200,000 per year for …
5. ### Finance

Investment X offers to pay you \$5,500 per year for nine years, whereas Investment Y offers to pay you \$8,000 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent?
6. ### Math

1. Jacksonville Technical College received \$3,445,553 in state aid on September 15 for the fall academic semester. The vice-president for finance decided to invest \$2,000,000 in a 2-month investment that pays 11.5% simple interest. …
7. ### Math

How to calculate this? 4 year term investment. The investment offers a rate of 2.25% per annum, compounded semi-annually. Another investment offers a rate of 2.25% annum, per compounded quarterly. Final investment offers a rate of
8. ### Algebra 1

An investment grows according to the exponential equation y = 15,000 · 1.07x, where x is the number of years invested. Which of the following statements is true?
9. ### Algebra

An investment grows according to the exponential equation y = 15,000 · 1.07x, where x is the number of years invested. Which of the following statements is true?
10. ### Managerial finance 4A

Mr Paul is identified three investment opportunities that he is considering.one is investment A that is expected to pay N\$800.00 ayear for three years,followed by N\$1000.00 per year for four years. it will pay N\$2000.00 at the end …

More Similar Questions