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A Present Value Problem 7. Donna is analyzing a project that will pay Donna $5,000 in two years. If Donna demands a rate of return
A Present Value Problem 7. Donna is analyzing a project that will pay Donna $5,000 in two years. If Donna demands a rate of return of 8%, how much should she invest in this project? Use this formula: PV = FV times 1/(1+.08) Round your answer to the nearest whole dollar. Your answer: $ Result: 0 A Present Value Problem 8. Will is considering an investment that will pay Will $5,000 in five years. How much should will invest in this project if Will demands a rate of return of 10%? Use this formula: PV=FV times 1/(1+.10) Round your answer to the neares whole dollar. Your answer: $ Result: 0 A Present Value Problem 9. Elizabeth is considering an investment that will pay her $1,000 in one year, and another $1,000 two years from now. How much should Elizabeth pay for this investment in order to earn a rate of return of 6%? Use this formula: PV=FV1 times 1/(1+.06)+ + FV2 times 1/(1.06)? Round your answer to the nearest whole dollar. Your answer: $ Result: 0 A Present Value Problem 10. Ed is considering an investment that will pay him $1,000 one year from now and $2,000 two years from now. How much should Ed pay for this investment, assuming that he wishes to earn a 6% rate of return on his investment. Use this formula: PV=FV, times 1/(1.06) + FV2 times 1/1.06) Round your answer to the nearest whole dollar. Your answer: $ Result: 0 0
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