User Account

All Pages

Which investment should your company invest in

Assignment Help Finance Basics
Reference no: EM131138625

Your company has $200,000 to invest and has identified the following three investments. Investment A requires an initial investment of $130,000 and has an annual rate of return of 12%. Investment B requires an initial investment of $70,000 and has an annual rate of return of 16%. Investment C requires an initial investment of $30,000 and has an annual rate of return of 27%. Unused funds will be placed in a bank account with an annual percentage rate of 4.5%. You may invest in each of the investments only once. All of the investments have a life of one year. Which investment should your company invest in?

Reference no: EM131138625

Questions Cloud

Paid innova company in full : Hyzer Disc Golf Course was opened on March 1 by Barry Schultz. The following selected events and transactions occurred during March:
Which track hoe should your company choose : The revenue from either track hoe is $95.00 per hour. Using 1,200 billable hours per year and a MARR of 20%, calculate the NPV for both track hoes. Which track hoe should your company choose?
Determine the incremental rate of return for problem 7 : The revenue from either track hoe is $95.00 per hour. Using a useful life of four years, a salvage value equal to 20% of the purchase price, 1,200 billable hours per year, and a MARR of 20%, calculate the NPV for both track hoes. Which track hoe shou..
Enter the beginning balances in the ledger as of april 1 : Enter the beginning balances in the ledger as of April 1. Insert a check mark (?) in the reference column of the ledger for the beginning balance.
Which investment should your company invest in : Unused funds will be placed in a bank account with an annual percentage rate of 4.5%. You may invest in each of the investments only once. All of the investments have a life of one year. Which investment should your company invest in?
Ou may invest in each of the investments only once. : You may invest in each of the investments only once. All of the investments have a life of one year. Which investment should your company invest in?
Measurement of market risk of a financial institution : 1. What is meant by market risk? 2. Why is the measurement of market risk important to the manager of a financial institution?3. What is meant by daily earnings at risk (DEAR)? What are the three measurable components? What is the price volatility co..
The trial balance of the sterling company shown below : Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,570 and $6,960, respectively.
Should your company purchase the dump truck : Using 1,000 billable hours per year determine the net present value for the purchase of the dump truck using a MARR of 18%. Should your company purchase the dump truck?

Reviews

Write a Review

Finance Basics Questions & Answers

  Find the amount of money in the account after 9 years

You deposit $2,500 in a savings account at a bank that has a rate of 6% compounded daily. Find the amount of money in the account after 9 years. (Assume there are 365 days in a year.)

  Stryker corporation: in-sourcing pcbs

Stryker Corporation: In-sourcing PCBs

  What are the costs of retained earnings and new common stock

The company currently Pays $2.10 cash dividend and has a 6 percent growth rate. What are the costs of retained earnings and new common stock?

  What are cisco net income

Cisco Systems has totalassets of $35.594 billion, total debt of $9.678 billion, and netsales of $22.045 billion. Their net profit margin for the year was 20 percent, while the operating profit margin was 30 percent. What are Cisco's net income, EB..

  What is the best estimate of the current stock price

The R Company's last dividend was $1.20. Its dividend growth rate is expected to be at 35% for 3 years, after which dividends are expected to grow at a constant rate of 5% forever. Its required return (rs) is 15%. What is the best estimate of the ..

  Component cost of debt

The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10 percent per year.  Assume the firm has sufficient retained earnings to fund the equity portion o..

  Compute the relevant initial outlay

The marginal tax rate for the firm is 40%. Compute the relevant initial outlay in this capital budgeting decision.

  Triumph company has total assets worth 6413228 next year it

1.planning models that are more sophisticated than the percent of sales method have2.firms that achieve higher growth

  The arlington property development co has a 10000 note

the arlington property development co. has a 10000 note receivable from a customer due in 3 years. how much is the

  Computation of weighted average cost of debt using book

Computation of weighted average cost of debt using book value weights and market value weights.

  Use the borrowed funds to repurchase outstanding shares

Management plans to borrow $200 million on a permanent basis through a leveraged recapitalization in which they would use the borrowed funds to repurchase outstanding shares.

  Question regarding the analysis of financial statements

What benefits are gained from research, planning, and the analysis of financial statements? Include sources and citing in APA format for each response.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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