13. An investment has a three year life. The initial investment cost is $600. The expected net cash flows for years 1 and 2 are $400 and $300, respectively. At an 8% cost of capital, the investment has a net present value of +$186. What is the year 3 net cash flow? 14. You expect to receive $2,000 at the beginning of each of the next 4 years, with the first $2,000 received right now (time 0). You will deposit these receipts into an account which pays 8 percent compounded quarterly. What is the future value of these payments, that is, the value at the end of the fourth year/ 13. You are offered an investment that requires you to pay $25,796 today in exchange for a $4,100 receipt at the end of each of the next 15 years. Using present value analysis and assuming you can earn 12% on all invested funds, is the investment offer worthwhile? Explain. 16. Eight months ago you purchased a share of stock for $60.25. You received three quarterly dividend payments of $0.25, with the last quarterly dividend paid yesterday right before you sold the stock for $66. What rate of return did you earn over the eight months? What is your annualized holding period return? (17. You 17. You purchased a U.S. T-bill 187 days ago at a price of $997.10. The bill has just been redeemed by the Treasury at par value ($1,000). What is your annualized HPR? 18. The management of the Rocking Horse Corporation plans to issue eight-year zero- coupon bonds. The bonds can sell today at a price of $439.76 and have a maturity value of $1,000. What annual interest rate will the company pay investors? Interest factors written ou PIZ Solved using