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BA 422 Managerial Finance Homework I: Uneven Cash Flow Fall, 2020 1. If you invest $7,200, what is your rate of return if you will

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BA 422 Managerial Finance Homework I: Uneven Cash Flow Fall, 2020 1. If you invest $7,200, what is your rate of return if you will receive the following cash flows at the end of these years: Yr. 1 - $1,500: Yr. 2 - $2,000: Yr. 3 - $2,000: Yr. 4 - $4,500? Internal Rate of Rotwn CA -7,200 IRR = 12.09 2. What would you be willing to pay (now) for the following year-end cash flows if your required return is 10%? Year 1 2,200 Year 2 4,400 Year 3 2,200 Year 4 3,300 3. If you invest $5,000, what is your rate of return if you will receive the following cash flows at the end of these years: Yr. 1. 1,000; Yr. 2.2,000; Yr. 3.2,000; Yr.4 4,000

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