Question
1.You have an opportunity to invest $49,500 now in return for $60,400 in one year. If your cost of capital is 8.4%, what is the
1.You have an opportunity to invest $49,500 now in return for $60,400 in one year. If your cost of capital is 8.4%, what is the NPV of this investment?The NPV will be $___??.
2.You have an opportunity to invest $101,000 now in return for 79,600 in one year and $29,800 in two years. If your cost of capital is 9.1 % what is the NPV of this investment? The NPV will be $__?
3. Your storage firm has been offered $100,000 in one year to store some goods for one year. Assume your costs are $95,000 payable immediately, and the cost of capital is 8.0%.
Should you take the contract?
The NPV will be $__? (Round to the nearest cent.)
Should you take the contract?The contract should not or should be taken?
4. You are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $87,000 immediately. If your cost of capital is 6.9 % what is the minimum dollar amount you need to sell the goods for in order for this to be a non-negative NPV? The minimum dollar amount is $__?
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