Question
1. A real estate investment has the following expected cash flows: YearCash Flows 1 $15,000 2 10,000 3 22,000 4 31,000 The discount rate is
1. A real estate investment has the following expected cash flows: YearCash Flows 1 $15,000 2 10,000 3 22,000 4 31,000 The discount rate is 11 percent. What is the investments present value? Round your answer to 2 decimal places; for example 2345.25.
2.
Micheal wants to have $68,000 in 10 years on a savings plan that requires monthly contributions. If he can earn 6 percent APR with monthlycompoundingon the savings plan, what is the amount that he will have to invest every monthfor the next 10 years? Round it totwo decimal placesand do not include the $ sign, e.g., 1234.56.
3.
South Penn Trucking is financing a new truck with a loan of $10,000 to be repaid in 5 annual end-of-year installments of $2,504.56. What annual interest rate is the company paying?
Question 9 options:7% |
8% |
9% |
10% |
11% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started