Question
1)The Hudson Corporation makes an investment of $24,000 that provides the following cash flow: ______________________________ YearCash 1 .........................$13,000 2 .........................13,000 3..........................4,000 _______________________________ What is the
1)The Hudson Corporation makes an investment of $24,000 that provides the following cash flow:
______________________________
YearCash
1 .........................$13,000
2 .........................13,000
3..........................4,000
_______________________________
- What is the net present value at an 8 percent discount rate?
- What is the internal rate of return?
- Is this problem, would you make the same decision under both parts A and B?
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2)Mrs. Crawford will receive $7,600 a year for the next 19 years from her trust. If a 14 percent interest rate is applied, what is the current value of the future payments?
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