1.-What is the internal rate of return (IRR) for a project that costs $50,000 today. This project is expected to provide the

following net cash flows at the end of each year. Year I = $15,000, Year 2 = $20,000, Year 3 = $25,000, Year 4 =

$30,000?

10.00%

2459%

20.00%

Not enough information to compute the IRR

O 12.83%

15.65%

2.-You plan to graduate with Master's degree at the end of 6 years from now. You want a break soon after, therefore plan to take a vacation after you complete your Master's graduation. How much will you have in your account at the end of 6 years, if you deposit $100 end of each month for the next 72 months in an account that is paying a 6 percent per year, compounded monthly?

58,684.09

S8,640.89

S8.370.38

$6,033.95

You are 25 years old and plan to retire at age 70, which is 45 years from now. You would like to have $1.0 Mn at the end of 45 years (which is when you retire). What should your monthly payment be, if you believe you can earn 12% compounded monthly?

$61.35

• $213.61 $46.61
• $135.05
• $85.00

0 $158.13