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a) If we want 8,000 five years from now and the compounded interest rate is 7%, how much should we invest today? (3 marks) b)
a) If we want 8,000 five years from now and the compounded interest rate is 7%, how much should we invest today? (3 marks) b) You are scheduled to receive 63,000 in three years. When you receive it, you will invest it for five more years at 14% per year. How much will you have in eight years? (2 marks) c) You are considering investing 350,000 in a project which will give a return of 170,000 at the end of year 1, and 230,000 at the end of year 2. Find the IRR and determine if the project is viable when the market rate is 10%. (The answer should be 4 decimal)
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