Quantitative Calculations Question Answer 2022

Running head: QUANTITATIVE CALCULATIONS
Quantitative Calculations
Name of the Student:
Name of the University:
Author Note:

QUANTITATIVE CALCULATIONS1
Table of Contents
Answer to Question 1:................................................................................................................2
Answer to Question 2:................................................................................................................5
Answer to Question 3:................................................................................................................6

QUANTITATIVE CALCULATIONS2
Answer to Question 1:
a)
The per month calculation of deposit comes to about $905 which should be saved to cumulate
$60000 at the end of 5 years. The calculation and the formula for PMT is shown below.
Figure 1: PMT
Source: By the author
PMT =
( i
1− ( 1+i )−n )−1∗− ( PV ∗( 1+i )n + FV )
b)
i)
According to the requirement rate of return of 10% the net present value of the investment
project comes to about $2314173 which means the project is viable. Thus the electric cars
segment Green Motors P/L can be purchased.
ii)
According to the requirement rate of return of 15% the net present value of the investment
project comes to about $-3726017. Thus the net present value of the investment at this
required rate is negative. Thus making the project not viable.

QUANTITATIVE CALCULATIONS3
NPV =Cash flow
( 1+ i )n −initial investment
Figure 2: NPV
Source: By the author
c)
i)
The Future value of the diversified portfolio after 33 years comes to about $438291. The
formula for the calculation along with the working is shown.
Figure 3: FV
Source: By the author
FV =PV∗[ ( 1+i ) n ]