Financial calculations. Test 2

If you invest 1000 US dollars in the project «А» today, you will receive 500, 400, 400, and 300 US dollars respectively over the next 4 years. Show the initial cost (present value) of your investment

• 1000 US dollars

• 500 US dollars

• 400 US dollars

• 300 US dollars

If you invest 1000 US dollars in the project «А» today, you will receive 500, 400, 400, and 300 US dollars respectively over the next 4 years. Calculate the future value of your investment in 4 years

• 1600 US dollars

• 1400 US dollars

• 1800 US dollars

• 1200 US dollars

If you invest 1000 US dollars in the project «А» today, you will receive 500, 400, 400, and 300 US dollars respectively over the next 4 years. Calculate the difference between the present and future values of your investment

• 600 US dollars

• 400 US dollars

• 800 US dollars

• 200 US dollars

If you invest 1000 US dollars in the project «А» today, you will receive 500, 400, 400, and 300 US dollars respectively over the next 4 years. Calculate the present value of the income promised to you for the first year of the project if the discount rate is 10%

• 500 / (1+0,1)¹ = 455 US dollars

• 500 / (1+0,1)² = 413 US dollars

• 500 / (1+0,1)³ = 376 US dollars

• 500 / (1+0,1)⁴ = 342 US dollars

If you invest 1000 US dollars in the project «А» today, you will receive 500, 400, 400, and 300 US dollars respectively over the next 4 years. Calculate the present value of the income promised to you for the second year of the project if the discount rate is 10%. 

• 400 / (1+0,1)¹ = 364 US dollars

• 400 / (1+0,1)² = 331 US dollars

• 400 / (1+0,1)³ = 301 US dollars

• 400 / (1+0,1)⁴ = 273 US dollars

If you invest 1000 US dollars in the project «А» today, you will receive 500, 400, 400, and 300 US dollars respectively over the next 4 years. Calculate the present value of the income promised to you for the third year of the project if the discount rate is 10%.

• 400 / (1+0,1)¹ = 364 US dollars

• 400 / (1+0,1)² = 331 US dollars

• 400 / (1+0,1)³ = 301 US dollars

• 400 / (1+0,1)⁴ = 273 US dollars

If you invest 1000 US dollars in the project «А» today, you will receive 500, 400, 400, and 300 US dollars respectively over the next 4 years. Calculate the present value of the income promised to you for the fourth year of the project if the discount rate is 10%.

• 300 / (1+0,1)¹ = 273 US dollars

• 300 / (1+0,1)² = 248 US dollars

• 300 / (1+0,1)³ = 225 US dollars

• 300 / (1+0,1)⁴ = 205 US dollars

If you invest 1000 US dollars in the project «А» today, you will receive 500, 400, 400, and 300 US dollars respectively over the next 4 years. Calculate the payback period (PP) of the project. 

• 2 years and 3 months 

• 2 years and 4 months 

• 2 years and 2 months 

• 2 years 

If you invest 1000 US dollars in the project «А» today, you will receive 500, 400, 400, and 300 US dollars respectively over the next 4 years. Calculate the income (profit) from investments (Return on investment, ROI).

• (500 + 400 + 400 + 300 –1000)/1000 = 0,6 or 60%

• (500 + 400 + 400 + 300 –1000)/4/1000 = 0,15 or 15%

• (500 + 400 + 400 + 300)/1000 = 1,6 or 160%

• (1000 – 1000)/1000 = 0 or 0%

If you invest 1000 US dollars in the project «А» today, you will receive 500, 400, 400, and 300 US dollars respectively over the next 4 years. Calculate the accounting rate of return (ARR).

• (500 + 400 + 400 + 300 –1000)/1000 = 0,6 or 60%

• (500 + 400 + 400 + 300 –1000)/4 /1000 = 0,15 or 15%

• (500 + 400 + 400 + 300)/1000 = 1,6 or 160%

• (1000 – 1000)/1000 = 0 or 0%