Business

FinanceQ&A LibraryI have discovered an excellent investment opportunity: I buy a computer for 10,000TL, develop software on it for four years gaining 3,000TL, 4,000TL, 6,000TL, and 7,000TL respectively, sell it for 5,000TL to somebody else and buy a new computer with the same price at the end of the fourth year and restarting the cycle once again. This cycle goes forever, repeating, without a stop forever. What is the rate of return of this investment? Write your answer as a decimal number, with at least one digit after the decimal point. If your result is 10.5% just write 10.5 (DO NOT write it as 0.105 or DO NOT put a percentage sign)Start your trial now! First week only $4.99!*arrow_forward*

Question

I have discovered an excellent investment opportunity: I buy a computer for 10,000TL, develop software on it for four years gaining 3,000TL, 4,000TL, 6,000TL, and 7,000TL respectively, sell it for 5,000TL to somebody else and buy a new computer with the same price at the end of the fourth year and restarting the cycle once again. This cycle goes forever, repeating, without a stop forever. What is the rate of return of this investment?

Write your answer as a decimal number, with at least one digit after the decimal point. If your result is 10.5% just write 10.5 (DO NOT write it as 0.105 or DO NOT put a percentage sign)

Tagged in

Business

Finance

Find answers to questions asked by students like you.

Q: How much interest did the account eran in the 25 years monthly payments were made?

A: The future value of money is considered as the sum of money received after a period of time at a cer...

Q: for information on MACRS depreciation.) What is the required net investment, and what are the year 1...

A: Net Investment= Cost of equipment + freight and installation cost= 900000+100000=1000000 The net in...

Q: This Year’s Actual Results Next Year’s Initial Forecast Net sales $17,000,000 $20,060,000 C...

A: Given: Current year sales = $17,000,000 Next year sales = $20,060,000 Forecast rate = ($20,060,000 -...

Q: Explain carefully how and why a decline in the required rate of return affects stock values and retu...

A: Required rate on stock decide value of stock because required rate depends on net income and capital...

Q: .. Ahmed, who was admitted in a hospital, was required to undergo a surgery. Before his operation, h...

A: Yes he can succeed Because position of doctor was dominant position and he was under high weak pos...

Q: 2) see picture

A: Formula to calculate current value of the stock is: P=D1/r - g Where P is the price of the stock D1 ...

Q: ABC Pvt. Ltd. is considering two mutually exclusive capital investments. The project’s expected net ...

A: Click to see the answer

Q: Q1.1: While buying a new car, Abigail made a down payment of $1,000 and agreed to make month-end pay...

A: Using excel PV function to calculate the purchase price of the car

Q: Q A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is o...

A: a) Future value = Present value * (1+rate)^year

Q: Pls solve asap...

A: The possible rate of return for this project is three because cash flows are not normal i.e. multipl...

Q: On November 30, 2018, EZ Products borrowed $48,000 on a 5%, 10-year note with annual installment pay...

A: Interest charged on the principal amount at a fixed rate for a fixed period of time is known as Simp...

Q: 2. A new machine is expected to cost Php 300, 000 and have a life of 5 years. Maintenance costs will...

A: Calculate he present value of expected costs

Q: Q.What is the advantage of an ETF relative to open-end and closed-end investment company? ____ A) In...

A: ETF has quite advantages over open ended and closed ended investment company.

Q: Jorsen Kithak wishes to analyze the two cases of annuity for 10-years, C and D. Annuity C is an ordi...

A: There are two types of annuity which are as follows: Ordinary annuity: It requires payment at the e...

Q: Olympic Sports has two issues of debt outstanding. One is a 4% coupon bond with a face value of $34 ...

A: Let par value of bond =100 Coupon =4%=4 YEILD to MATURITY =5% Years to MATURITY =15 Present value FA...

Q: Chhom Corporation makes a product whose direct labor standards are 0.9 hours per unit and $21 per ho...

A: Labor Efficiency Variance = (Actual Hours - Standard Hours) x Standard Rate

Q: As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI (i...

A: Click to see the answer

Q: 3. Analysis of a replacement project At times firms will need to decide if they want to continue...

A: Analysis of Replacement Projects

Q: Brittany is co-oping this semester at Regency Aircraft, which customizes the interiors of private an...

A: I. Let first cost be x Life of machine=10 years MARR= 8% Salvage value=0.2x x=15000×PVA8%,10+0.2x×PV...

Q: The equipment has a delivered cost of $57,000. An additional $3,000 is required to install the new e...

A: Hi there. Thanks for the question. Question has multiple sub parts. As per company guidelines expert...

Q: Choose option a,b,c,d,e for the following: Question 7 - Imagine two currencies: X and Y. If it takes...

A: Introduction: Exchange rate is the nothing but a rate at which two currencies are traded for each ot...

Q: Mr. Shariq owes Mr. Farooq Rs. 7000 due in 5 years and Rs. 15,000 in 7 ½ years. How much should Mr. ...

A: Present value of 7,000 due in 5 years Future value of 15,000 due in 7.5 years

Q: Ahmad earned $475 last summer. He deposited this money in an account that pays an interest rate of 3...

A: Future value = Present value * (1+rate)^n Where, n = no. of compounding period i.e. 15

Q: FFC is trying to establish its optimal capital structure. Its current capital structure consists of ...

A: Unlevered beta = levered beta / 1+((1-taxrate)*D/E Unlevered beta = 1.50 / 1+((1-0.40)*0.25/0.75 U...

Q: In a maximal flow problem, a.the flow out of a node is less than the flow into the node. b.the numb...

A: In a maximal flow problem the number of arcs entering a node is equal to the number of arcs exiting ...

Q: A portfolio that combines the risk-free asset and the market portfolio has an expected return of 6.2...

A: Formula for expected return is: E(r) = Rf + Beta(Rm - Rf)

Q: North Star is trying to determine its optimal capital structure, which now consists of only common e...

A: cost of equity = risk free rate + levered beta * market risk premium Levered Beta =Unlevered Beta *...

Q: Year 1-Year Forward Rate 1 4.6 % 2 4.9 % 3 5.2 % 4 5.5 % 5 6.8 % What should th...

A: GIVEN, PAR = $1000 FORWARD RATE OF ONE YEAR ZERO COUPON BOND = 4.6% PRICE =PAR1+R=$10001+4.6%=$956.0...

Q: Calculate the yield to maturity on the following bonds. A 9 percent coupon (paid semiannually) bon...

A: Dear student, as per Bartleby answering guideline, if a student post multiple question then an exper...

Q: Question 2Swann Systems is forecasting the following income statement for the upcoming year:Sales $5...

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want rem...

Q: Choose option a,b,c,d, for the following: Question 8 - You own 1000 shares of Hefty Inc. Hefty follo...

A: For the following case, DDM model should be used for the purpose of predicting stock’s price on the ...

Q: What is the value today of $4,800 per year, at a discount rate of 8 percent, if the first payment is...

A: The formula to compute present value of annuity as follows: Present value of annuity=C×1-1+r-nr

Q: a. Differentiate between Minor and Excessive Gharrar with examples of each.

A: In Islamic banking, interest rate is not charged on borrowings. Charging interest rate is considered...

Q: When deciding whether to make or buy a component part, the most relevant consideration is often: Que...

A: Capital intensive costs are costs that are incurred to purchase/improve the capital equipment. When ...

Q: If you need $40,000 five years from determine the minimum amount of money you need to deposit into n...

A: Working note:

Q: You expect that Bean Enterprises will have earnings per share of $2 for the coming year. Bean plans ...

A: No Dividend for three years Cost of reinvestment =20% Earnings for fourth year =2(1.2)4=3.46 50% is...

Q: 4. A particular security’s equilibrium rate of return is 8 percent. For all securities, the inflatio...

A: The rate of return on a security refers to the compensation paid by the company to the investors who...

Q: 1.On August 15, you purchased 100 shares of stock in the Top Company at $65 a share anda year later ...

A: HPR or HPY = (Value of share at end - Value of share at beginning) / Value of share at beginning HPR...

Q: the bond. If the current one-year interest rate on government bonds is 8 percent, then the price Tal...

A: Time Period = 2 years Face Value = 5000 Coupon = Coupon Rate * Face Value = 6%*5000 = 300 Interest R...

Q: The Estrella-Pantaleon Bridge connecting Estrella, Makati City to Barangka Drive in Mandaluyong is a...

A: (a) Cost of asphalt overlay =PhP 11,000/m2 Therefore, total initial cost of the asphalt overlay =PhP...

Q: Consider a 20-year mortgage for $174,334 at an annual interest rate of 5%. After 8 years, the mortga...

A: Time period = 20 years Value of mortgage = $174,344 Annual interest rate = 5% Refinancing time peri...

Q: Athletics sells bicycles for $350 less 15% during the spring sale. city cycle sells their bicycles f...

A: a) Athletics sell price =$350 Athletics discount = $350 * 15% =$ 52.50 Athletics price after discoun...