Aplicaii pentru lucru individual la tema 6. 1. An investment project has a cost of 1300 thousands m.u.

and an exploitation period of 5 years. The situation on project incomes and expenditures for each year is presented in the table. Exploitation period Indicators 1 3 ! 5 "ash inflo#s 1500 000 500 000 1500
$thousands m.u.% "ash outflo#s $thousands m.u.%

1100

1!00

1&00

1!00

1 00

At the end of the last year it #ould be sold for 3 thousands m.u. 'etermine the projected cash flo#s for the proposed project and the total discounted cash flo# if the discount rate is 1 (. . An investor is analysin) an investment project of purchasin) a ne# technolo)y. The total investment amount is !0.000 lei. It is expected that the salva)e value #ill cover the expenses for li*uidation. The expected revenues are the follo#in)+1 year , 0.-00 lei. year , 30.&00 lei. 3 year , 5.000 lei . ! year , 15.000 lei. The operatin) costs for the first year are !-00 lei and each year it #ill increase to 5(. The cost of capital is 1 (. The company #ill have to pay income taxes of 0(. 'etermine the projected cash flo#s after taxes for the proposed project and the total discounted cash flo#. 3. "onsider an investment of 1500 m.u. for ! years. at interest rate of 1&( compounded *uarterly. a. "alculate the amount available at the end of the second year. b. "alculate the effective annual interest rate. !. To #hat value #ill )ro# /10000 if it is invested at 15 percent annually for ! years. 0hat #ould the future value be if the interest #ere compounded annually. semiannually. *uarterly. and monthly1 5. 0hat is the present value of a 5 year ordinary annuity of / 00 if the interest rate is 10( annually1 0hat #ould the future value of annuity #ould be if the annuity #ere an annuity due. &. 0hat is the future value of a 3 year ordinary annuity of /100 if the interest rate is 10( annually1 0hat #ould the present value of annuity #ould be if the annuity #ere an annuity due. 2. A company invests /1 000 in rental property and expects the price to appreciate -( annually for & years. "alculate the expected price of the property at the end of 3 years and at the end of & years. -. Assumin) an -( annual opportunity cost. #hich amount is #orth more today /&000 at the end of the next 10 years or /1 000 at the end of the next 0 years1 3. An investor #ill ta4e from a corporation annual dividends in amount of 50.000 m. u. for 10 years. 0hat is the present value of the dividends received in the last year if the discount rate is 15(1 0hat #ould be the total amount of dividends at the end of the time period1 10. 5ou invested 50000 67'. and ten years later the value of your investment has )ro#n to 1-53&1 67'. 0hat isyour compounded annual rate of return over this period1