If a physician deposits $24,000 today into a mutual fund that is expected to grow at an annual rate of 8%, what will be the value of this investment:3 years from now, 6 years from now, 9 years from now and 12 years from now

a. $24,000 = (1 + 0.08)3 = 32,768 $24,000 x (1 + 0.08)^6 = $45,158.72 c. $24,000 x (1 + 0.08)^9 = $60,977.56 d. $24,000 x (1 + 0.08)^12 = $81,302.97

  1.  

a. $120,000 / (1 + 0.03)^5 = $90,829.51 b. $120,000 / (1 + 0.06)^5 = $81,717.66 c. $120,000 / (1 + 0.09)^5 = $73,968.43 d. $120,000 / (1 + 0.12)^5 = $67,382.23

  1. We need to calculate the IRR or internal rate of returns for the project by finding the discount rate which makes the expected cash flow net present value (NPV). Here is the formula to calculate NPV:

NPV = C0 + (1+ r.)1) + (1+ r.)2) + (1+ r.)3) + (1+ r.)3) + (1+ r.)4) + (1+ r.)4) + (1+ r.)5)

The initial investment is C0, the cash flow expected for each year is C1, C2, and C3, while C3 and C4 are C3 and C4, respectively.

  1. We will use this formula to determine the net present value.

The NPV is (-C0/ (1+r)1) +(C2/ (1+r)2) +(C3/ (1+r)3) + (+C4/ (1+r)4) + (+C5/ (1+r)5)

The initial investment is C0, which is $900,000. C1, C2, and C3 are expected cash flows each year. C1, C3, and C4 represent the annual cash flows ($120,000 to $155,000 respectively), while C2, C3, and C4 refers to the anticipated cash flow for each year ($120,000, $156,000, $208,000 and $225,000, respectively). r is the discount rate (10%)

The NPV is (-900,000.00) + (120,000/ (1+ 0.1.1) + (155,000/ (1+ 0.1.2) + (186,000/ (1+ 0.1.3) + (208,000/ (1+ 0.1.4) + (225,000/ (1+ 0.1.1)5)

NPV = +900,000. +108.333 +125.500 +153.286 +185.185 + 194,476

1.042,770 = National Poverty Value

The NPV of a project that generates more value than it costs is positive. Therefore, it is recommended to move forward with the project.

  1. The payback period refers to the time it takes for a project’s initial investment to be recouped. The payback period is calculated by adding up all cash flows that exceed $900,000.

Year 1: $120,000. Year 2: $120,000 + $155,000 = $275

How do you place an order?

It takes a few steps to place an order with Us:

  • The first step is to place your order. You will need to provide us with some basic information about your project.
  • Once you have placed your order, you will be taken to our secure payment page.
  • Once we receive your order, we will carefully review it and match you with a writer who has the skills and experience.
  • Stay in contact with the writer and discuss vital details of research.
  • Your completed proposal will be delivered via email within the specified deadline.

You are secure when using our service

It's critical for each client to feel secure. As a result, we at Research Proposal Writing take precautions to secure your data.

Financial security You may securely pay for your purchase using a variety of secure payment methods.
Personal security The personal information of our clients is secure. Nobody else will have access to it.
Academic security We use a specialized program to check every completed paper to ensure that we deliver no-plagiarism samples.
Web security This website is safe from unauthorized breaches. We maintain our privacy management in line with the latest laws and regulations.

You can get help placing your order. If you have any questions about our services, please contact us. Our support staff is accessible 24 hours a day, 7 days a week.

If you're still looking for a way to improve your grades and hire expert writers, we've got you covered. Place an order on our website, and we'll help you with any paperwork you want. We will exceed your expectations.

Order now Get a quote