Business Math

posted by .

Assuming the required RoR for an Investment is 12% and using an inflation rate of 3%, would you recommend the investment?Investment at year 0 = $8.5 million, Net income at years 1-5 is $1.5 million for each year.

  • Principles of finance -

    a bond has the following terms, Principal amount-$1000,Semi-annually $50, Maturity 10 Years, what is the bonds price if comparable debt yields 12%

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. corporate finance

    A company is considering a $250 million investment in land that it will hold for 25 years. The pretax net cash flows are $40 million per year and land prices are expected to rise at a rate of 7% per year. The opportunity cost of capital …
  2. business

    A company is considering a $250 million investment in land that it will hold for 25 years. The pretax net cash flows are $40 million per year and land prices are expected to rise at a rate of 7% per year. The opportunity cost of capital …
  3. Management Accounting

    Deer Valley Lodge, a ski resort in the Wasatch Mountains of Utah, has plans to eventually add five new chair lifts. Suppose that one lift costs $2 million and preparing the slope and installing the lift costs another $1.3 million. …
  4. finance

    You have been given the following information on a project: It has a 3-year lifetime The initial investment in the project will be $28 million, and the investment will be depreciated straight line, down to a salvage value of $6 million …
  5. FINANCIAL ACCOUNTING

    A portfolio manager is managing a $10 million portfolio. Currently the portfolio is invested in the following manner: Investment Dollar Amount Invested Beta Electric Utility $2 million 0.6 Cable Company $3 million 0.8 Real Estate Development …
  6. Finance

    Suppose the chances of winning the lottery are 1 in 14 million with the earnings of $20 million to the lucky winner. A ticket costs $1. However, the winnings are paid over 20 years, with the first $1 million payment occurring immediately. …
  7. corporate finance

    Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.00 million. This investment will consist of $2.60 million for land and $9.40 …
  8. Finance

    Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.00 million. This investment will consist of $2.60 million for land and $9.40 …
  9. 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?
  10. 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?

More Similar Questions