Payb- Based on the information below, calculate the payback period. (4 points) Show and label your work. Investment $700,000 Required rate of return 12% Depreciation method Straight Line Useful life 5 years Residual value $20,000 Estimated net cash inflows per year for five years $150,000 2. Based on your answer in part 1, would you accept or reject this project? Why?

The management of a private investment club has a fund of $250,000 earmarked for investment in stocks. to arrive at an acceptable overall level of risk, the stocks that management is considering have been classified into three categories: high risk (x), medium risk (y), and low risk (z). management estimates that high risk stocks will have a rate of return of 15%/year; medium risk stocks, 10%/year; and low risk stocks, 6%/year. the amount of money invested in low risk stocks is to be twice the sum of the amount invested in stocks of the other two categories. if the investment goal is to have a rate of return of 9% on the total investment, determine how much the club should invest in each type of stock. (assume that all the money available for investment is invested.)

What two things do you consider when evaluating the time value of money

Retail industry fundamentals credential exam,part 1 all answers