Question
1.An investor is considering the following opportunity: He will put capital into a start-up company today. He will not receive any cash flows from the
1.An investor is considering the following opportunity: He will put capital into a start-up company today. He will not receive any cash flows from the investment until end of the 5th year. At that point, he will receive 10.00 years of $11,400.00 per year. If his discount rate on this investment is 20.00%, what is the value of this opportunity today?
2.An investor contributes $525.00 per quarter in an account that pays 6.60% APR with quarterly compounding. The first contribution will be made next quarter. What is the future value of this account in 20.00 years?
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