Question
A. You are a manager and you have received the following proposal, A construction investment has the following expected cash flows: Year Cash Flows 1
A. You are a manager and you have received the following proposal, A construction investment has the following expected cash flows: Year Cash Flows 1 $10,000 2 25,000 3 50,000 4 35,000 In another occurrence, your brother is his 23rd birthday is today. He just received $1,000 from a relative. He opened a brokerage account with the funds. Starting next year, He intends to put an extra $2,000 to the account on his birthday, up to and including his 65th birthday. A 12% projected yearly return is offered by the account. When he contributes the final $2,000 at age 65. Required: 1. What is the present value of this investment if the discount rate is 8 percent? (7 Marks) 2. How much does your brother anticipate having in his account at the age of 65?
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