Question 1

What is the rate of return on an investment of $16,278 if the company expects to receive $3,000 per year for the next ten years?

Accepted Answer

A) 18 percent 
B) 13 percent 
C) 8 percent 
D) 3 percent 
E) 10 percent 
A) 18 percent 
B) 13 percent 
C) 8 percent 
D) 3 percent 
E) 10 percent

Question 2

The rate of return earned on an investment of $50,000 today that guarantees an annuity of $10,489 for six years in approximately:

Accepted Answer

A) 5 percent 
B) 7 percent 
C) 30 percent 
D) 10 percent 
E) 12 percent 
A) 5 percent 
B) 7 percent 
C) 30 percent 
D) 10 percent 
E) 12 percent

Question 3

Assume that you will receive $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through 8, and $4,000 in Year 9, with all cash flows to be received at the end of the year. If you require a 14 percent rate of return, what is the present value of these cash flows? (Round to the nearest whole dollar)

Accepted Answer

A) $9,851 
B) $13,250 
C) $11,714 
D) $15,129 
E) $17,353 
A) $9,851 
B) $13,250 
C) $11,714 
D) $15,129 
E) $17,353

What is the rate of return on an investment of $16,278 if the company expects to receive $3,000 per year for the next ten years?

The rate of return earned on an investment of $50,000 today that guarantees an annuity of $10,489 for six years in approximately:

Overview of Finance

Financial Statements and Ratio Analysis

Time Value of Money - Introduction

Risk and Return - Introduction

Portfolio Theory

Interest Rates and Bond Valuation

Stock Valuation and Market Efficiency

Capital Budgeting Techniques

Capital Budgeting - Cash Flows

Cost of Capital

Capital Structure

Dividends, Repurchases, and Splits

Financial Planning

The Management of Working Capital

International Finance

Filters

Exam 4: Time Value of Money - Streams and Valuations

What is the rate of return on an investment of $16,278 if the company expects to receive $3,000 per year for the next ten years?

The rate of return earned on an investment of $50,000 today that guarantees an annuity of $10,489 for six years in approximately:

Overview of Finance

Financial Statements and Ratio Analysis

Time Value of Money - Introduction

Risk and Return - Introduction

Portfolio Theory

Interest Rates and Bond Valuation

Stock Valuation and Market Efficiency

Capital Budgeting Techniques

Capital Budgeting - Cash Flows

Cost of Capital

Capital Structure

Dividends, Repurchases, and Splits

Financial Planning

The Management of Working Capital

International Finance

Filters