An investment costs $465 now and is expected to produce cash flows of $100 at the end of each of the next 4 years, plus an extra lump sum payment of S200 at the end of the 4th year. What is the expected rate of return on this investment? Year Ann Pmt Lump Sum Total CFs $100 $100 $100 $100 $200 S300 $465 S465 $100 IRR An investment costs $465 and is expected to produce cash flows of S100 at the end Year I, S200 at the end of Year 2, and $300 at the end of Year 3. What is the expected rate of return on this investment? Year CFs S465 $100 $200 5300 IRR A company's sales in 2009 were $100 million. If sales grow at 8%, what will they be 10 vears later? 10 8% $100 S0 PV (SM) PMT FV (SM) How much would SI, growing at 5% per year, be worth after 100 years? 100 5% $1 S0 PV PMT What would FV be if the growth rate were 10%? 100 10% $1 S0 PV PMT