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Basic Time Value of Money on a calculator... I just need to know inputs on the calculator Basic TVM Calculations: Please compute the following answers,

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Basic Time Value of Money on a calculator... I just need to know inputs on the calculator

image text in transcribed

Basic TVM Calculations: Please compute the following answers, this can be done on a financial calculator or Excel (which is recommended). Please select the single best answer / the answer closest to your result. 1 2 3 4 5 6 7 8 9 10 What is the NPV of the following annual cash flows, at an annual interest rate of 5%? Year 1 50.0 Year 2 50.0 Year 3 50.0 Year 4 50.0 Year 5 50.0 Year 6 50.0 Year 7 50.0 Year 8 50.0 Year 9 50.0 What is the NPV of the following quarterly cash flows, at an annual interest rate of 4%? Quarter 1 10.5 Quarter 2 10.5 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 10.5 10.5 10.5 What is the annualized IRR of the following annual cash flows? 10.5 Year 7 10.0 Qtr7 14.0 10.5 Today Year 1 -100.0 10.0 Year 2 10.0 Year 3 10.0 Year 4 10.0 Year 5 10.0 What is the IRR of the following quarterly cash flows? Today -100.0 Qtr 1 2.0 Qtr2 4.0 Qtr3 6.0 Qtr 4 8.0 Qtr5 10.0 Year 6 10.0 Qtr6 12.0 Year 8 10.0 Qtr8 16.0 Year 9 10.0 Qtr9 18.0 Year 10 1050.0 Quarter 8 10.5 Year 10 110.0 Qtr 10 20.0 Your favorite company, The Red House Furniture Company, issues $100,000 of 10yr bonds. The bonds have a 5% annual coupon which it pays semi-annually (i.e. 2.5% every 6mo). If the bonds are priced at a yield-to-maturity of 4%, what is its PV? You buy your first condominium (congrats!) and take out a $100,000 30yr mortgage. The mortgage has a stated annual interest rate of 6%. What is the monthly payment amount? Regarding the mortgage in the previous question, a $100,000 30yr mortgage. If instead of paying an interest rate of 6% you found a mortgage offered at 5%, by how much would your monthly payment be lower? You are offered an investment with an 8% annual interest rate, compounded quarterly. You invest $10,000. How much money do you have at the end of one year? You invest $75,000 in a brewery, Hoppy Ending Pale Ale. The first year, you earn $10,000. The second year you earn $15,000. But, also in year two, you have to replace your fermentation tank, at a cost of $25,000. The third year you earn $20,000. The fourth year you earn $25,000. The fifth and final year you earn $30,000. At the end of year five, you sell the entire operation for $100,000. What was the annualized IRR of the project? You invest $75,000 in a coffee shop, Espresso Patronium. The first year of operations, you earn $1,000 each month. The second year you earn $1,500/mo. The third year you earn $2,000/mo. The fourth year, $2,500/mo. The fifth and final year you earn $3,000 per month. At the end of year 5, you sell the business for $100,000. What was the annualized IRR of this project?

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