题目内容

Terrison Inc. is considering the purchase of a new material handling system for a cost of $43 million. This System is expected to generate a positive cash flow of $5 million per year in perpetuity. What is the NPV of the proposed investment if the appropriate discount rate is 7%

A. $6753582
B. $28428571
C. $34395213

查看答案
更多问题

Two events are said to be independent if the occurrence of one event:

A. means that the second event cannot occur.
B. means that the second event is certain to occur.
C. does not affect the probability of the occurrence of the other event.

What is the bank discount yield for a T-bill that is selling for $48 000, with a face of $50 000, and 270 days remaining until maturity

A. 5.3%
B. 6.7%
C. 13.4%

Which of. the following statements least likely represents a characteristic of the time-weighted rate of return

A. It is not affected by the timing of cash flow.
B. It is used to measure the compound rate of growth of $1 over a stated measurement period.
C. It is defined as the internal rate of return on an investment portfolio, taking into account all inflows and outflows.

A woman is using the following information to plan her retirement: current age (years) 24 expected retirement age (years) 68 life expectancy (years) 93 current annual expenditures $30000 expected inflation rate until retirement 3% expected return on investment 8% She assumes her consumption expenditures will increase with the rate of inflation, 3 percent, until she retires. Upon retiring she will have end-of-year expenditures equal to her consumption expenditure at age 68. The minimum amount that she must accumulate by age 68 in order to fund her retirement is closest to:

A. $928000
B. $1176000
C. $1552000

答案查题题库