100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
DSC 1630 Assignment 4 Semester 1 2022 Q&A $5.50   Add to cart

Exam (elaborations)

DSC 1630 Assignment 4 Semester 1 2022 Q&A

 19 views  0 purchase
  • Course
  • Institution

DSC1630 Introductory Financial Mathematics Department of Decision Sciences Assignment 04 for Semester 01 2022 Unique assignment number: Due Date: 26 April 2022 Questions 1, 2 and 3 are based on the following situation: An investment with an initial outlay of R500 000 generates fi...

[Show more]

Preview 3 out of 20  pages

  • July 13, 2022
  • 20
  • 2021/2022
  • Exam (elaborations)
  • Questions & answers
avatar-seller
DSC
1630Assignment 4
Semester1 2022
QuestionsandAns
wers




Downloadedby:tebatsokgar
i|
tebatso.kgari@gmail.com

, Stuvia.com -
Thestudy-




DSC1630

Introductory Financial Mathematics

Department of Decision Sciences

Assignment 04 for Semester 01 2022

Unique assignment number: 632596
Due Date: 26 April 2022

Question 1




Questions 1, 2 and 3 are based on the following situation:

An investment with an initial outlay of R500 000 generates five successive annual cash
inflows of R75 000, R190 000, R40 000, R150 000 and R180 000 respectively. The cost of
capital K is 10% per annum.

Question 1

The internal rate of return (IRR) is

[1] 7,78%.
[2] 21,3%.
[3] 27,0%.
[4] 9,48%.

Answer:

Asked is to determine the IRR for five successive annual cash inflows. Thus using the
formula for the IRR we can write that




Downloadedby:tebatsokgar
i|
tebatso.kgari@gmail.com

, Stuvia.com -
Thestudy-




75 000 190 000 40 000 150 000 180 000
() = 1 + + ( 1 + )2 + (1 + )3 + (1 + ) 4 + (1 + ) 5 – 500 000

And determine when ( ) = 0.

Using your calculator we determine that is equal to 7,78%:




Downloadedby:tebatsokgar
i|
tebatso.kgari@gmail.com

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller NursesHub. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $5.50. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

75632 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$5.50
  • (0)
  Add to cart