Calculate the rate of return represented by the cash flow

Assignment Help Econometrics
Reference no: EM13203105

A $40,000 investment you made yields annual payments of $22,000, $14,000, $17,000, $25,000, and $38,000 at the end of the next 5 years respectively. Calculate the rate of return represented by this cash flow to three significant figures. If you were offered an additional $10,000 at the end of one of the five years and you could choose the year, which year would be the most advantageous and what would be the new rate of return?

Reference no: EM13203105

Questions Cloud

Urban culture of the large u.s. cities : The following statements most accurately characterizes the new urban culture of the large U.S. cities such as New York during the 1800s
What size of cardboard should you start with : a rectangular piece of cardboard whose area is 216 square centimeters is made into a cylindrical tube by joining together two sides of the rectangle. If the tube is to have a volume of 224 cubic centimeters what size of cardboard should you start ..
State a truck can be rented from basic rental : Continental charges $20/day and 50 cents per mile. How many miles must you drive in a day to make Basic a better deal than continental.
How much more should you receive in annual salary : One of your professors has made you an offer you can't refuse. You are getting a four year research assistantship to earn your PhD after you receive your BS degree. The assistantship will pay you $2,600 per month starting in June, immediately afte..
Calculate the rate of return represented by the cash flow : A $40,000 investment you made yields annual payments of $22,000, $14,000, $17,000, $25,000, and $38,000 at the end of the next 5 years respectively. Calculate the rate of return represented by this cash flow to three significant figures.
Define how fast is the grapefruit traveling : How long does it take for the grapefruit to reach, and splatter all over, the sidewalk below? How fast is the grapefruit traveling when it hits the ground?
What dimensions will give the largest printed area : A poster is to have an area of 220 in2 with 3 inch margins at the bottom and sides and a 5 inch margin at the top. What dimensions will give the largest printed area? (Give your answers correct to one decimal place.)
Sales conversion index : How might an entrepreneur involved in retail or service sales use the “sales conversion index (SCE)” including the ideas of “inshopping” (p. 350) and “outshopping” to find the most effective location for a retail or service business?
Find the dimensions of the aquarium : The base of an aquarium with volume V = 390 is made of slate and the sides are made of glass. If slate costs five times as much (per unit area) as glass, find the dimensions of the aquarium that minimize the cost of the materials.

Reviews

Write a Review

Econometrics Questions & Answers

  Determine whay is the payback period

Whay is the payback period of the following investment when a) i=0% and b) i=10%/ year Initial Cost ($) 1,000,000 Annual Cost ($) 100,000 Annual income ($) 300,000 salvage Value ($) 500,000 Max Life time: 10 years

  Calculate the average cost of producing

Does the firm have constant, increasing, or decreasing returns to scale? Why? If wages are $20,000 per person per operating period and capital units for $3,000 per unit per operating period, calculate the average cost of producing 12,000 units and..

  New deal finance speculation and turbulence

The United States was devastated through the Crash of 1929 and the following depression. What policies were enacted during the New Deal contain finance speculation and turbulence?

  What is his average tax rate in percentage

The income tax system in a country requires each citizen to pay 10% of income on earnings up to $40,000, and then pay 20% on any earnings over $40,000. If an individual has an income of $92350, then what is his average tax rate, in percentage term..

  Can jacque fix the same kind of meal in 2 hours

Julia can fix a meal in 1 hour, and her opportunity cost of one hour is $50. Jacque can fix the same kind of meal in 2 hours, and his opportunity cost of one hour is $20. Will both Julia and Jacque be better off if she pays him $45 per meal to fix..

  What is the economy''s mpc

Suppose that disposable income consumption Andy saving in some country are$200 billion, $150 billion and $50 billion respectively, next assume that disposable income increase by $20 billion, consumption rises by $18 billion and saving goes up by $..

  Forecast the tire sales for february through may

Use simple exponential smoothing with a=0.33 to forecast the tire sales for February through May. Assume that the forecast for January was for 22 sets of tires. Months / Auto Tire Sales Jan / 28 feb / 21 ..

  Calculate the optimal number of workers in each sector

where L1 is the number of workers employed in Sector 1 and L2 is the number of workers employed in Sector 2. The total number of workers in the economy is 1,000. The only difference between the sectors is that in Sector 1 workers are paid their ma..

  What is the variability in q is explained by the equation

Obtain a linear function for demand in the form Q = A +bP using linear regression formulae (contained in the book/appendix)from these five price/quantity points: P= 20, 17, 15, 10, 8 Q = 2, 12, 16, 20, 30 What % of the variability in Q is explained b..

  Determine regression coefficient (b) and the t-statistics

The Following table shows the regression coefficient (B) and the t-statistics (T) for the variables influencing business traveler demand for hotel rooms (including hotel prices and attributes) from the study Business Traveler Demand for Hotel Rooms

  What is present worth of the concept compounded quarterly

The company's computer system uses fluid structure interaction modeling to test and analyze each airbag design concept. What is the present worth of the concept at 16% per year, compounded quarterly, if the quarterly cost in years 1 through 5 is $..

  What is the socially optimal number of concerts

The Santa Barbara Bowl (SBB) holds outdoor music events (M), earning $3 of revenue from each concert and with total costs of cM(M) = M2=8 for M concerts. Ursula is a writer who lives right next to the SBB and who sells her novels on the competitiv..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd