Question
1) If you invest $3,200 per year for 30 years and earn an annual return of 10%, how much will you have at the end
1) If you invest $3,200 per year for 30 years and earn an annual return of 10%, how much will you have at the end of 30 years?
2) You have a choice of three investments, all of which have equal lives and pay the same total dollar amount of cash flows. Investment A has a large cash flows at the beginning and small cash flows at the end. Investment B has a large cash flows at the end and small cash flows at the beginning. Investment C has the same cash flow every year. If the interest rate is the san1e for all three investments, which investment has the largest present value?
3)
Your company is considering a project with the following cash flows: Initial Outlay= $2,134
Cash Flows Year 1-7 = $560/yr.
Compute the internal rate of return on the project.
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