1. A business borrows $20 million for 30 days and another $20 million for three years plus 30 days. Assuming 7.0% interest rate and daily compounding, calculate the loan payoff. 2. A business considers the following investment projects; your task is to determine whether to accept or reject the following investment and rank them by their NPV: All the projects require an immediate investment of $1,000,000: Project A, next year cash flow of $100,000 growing at 1% every year, and will continue annually and indefinitely Project B, $250,000 for 8 years, starting in two years, a. assume first 4.0% discount rate. b. repeat following a FED rate increase to 12%. 3. On October 1, 2023, a legal settlement has been reached. It calls for a $60,000 payment every quarter for 5 years, with the first payment October 1, 2024, assume, today is October 1, 2023. Assuming 8.0% discount rate, calculate the present value of the settlement. 4. Excel. The company you work, borrows $80 million for five years. The loan will be paid back in equal semi-annual payments. For tax purposes your manager asks you to prepare the five years of annual interest charges on that loan. Assume an annual interest rate of 14%. You can use Excel.

1. A business borrows $20 million for 30 days and another $20 million for three years plus 30 days. Assuming 7.0% interest rate and daily compounding, calculate the loan payoff. 2. A business considers the following investment projects; your task is to determine whether to accept or reject the following investment and rank them by their NPV: All the projects require an immediate investment of $1,000,000 : Project A, next year cash flow of $100,000 growing at 1% every year, and will continue annually and indefinitely Project B, $250,000 for 8 years, starting in two years, a. assume first 4.0% discount rate. b. repeat following a FED rate increase to 12%. 3. On October 1,2023 , a legal settlement has been reached. It calls for a $60,000 payment every quarter for 5 years, with the first payment October 1,2024, assume, today is October 1, 2023. Assuming 8.0% discount rate, calculate the present value of the settlement. 4. Excel. The company you work, borrows $80 million for five years. The loan will be paid back in equal semi-annual payments. For tax purposes your manager asks you to prepare the five years of annual interest charges on that loan. Assume an annual interest rate of 14%. You can use Excel