1. An investor requires a 15% return on their investement. A $250000 investment made today is expected to pay what in 4 years?
2. Our recent retail development is now stabilized. Projected cash flows are flat at $50,000 per year for 10 years. What is the present value of those cash flows at a 9% discount rate?
3. A preferred equity investment is expected to generate a constant stream of annual cash flows of $25,000 per year for 7 years. What is the present value of those cash flows with an opportunity cost of capital of 12% (discount rate)?
4. If those returns are reinvested at a fixed rate of 8% what is the future value of the reinvested stream at the end of the seven year period?