Question
1.) What is the EAR of 14.5% per annum, compounded weekly? Show your answer to two decimal points. 2.) What is the NPV for an
1.) What is the EAR of 14.5% per annum, compounded weekly? Show your answer to two decimal points.
2.) What is the NPV for an investment with an initial outlay now of $459, and expected cash inflows of $142, $261 and $381 at the end of years one through three, respectively, at a discount rate of 7.7% ?
3.) A business borrows $329,044 for 10 years at an annual rate of interest of 8.6%. If payments are annual and the loan will negatively amortize by $40,906, what will be the annual payment required? Put your answer in as a positive number.
4.) What is the present value of a perpetuity making quarterly payments in arrears in the amount of $9,475 per quarter, and the appropriate annual rate of interest is 10.5%?
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