Question
Consider the time value of money for the below cases: a. A project costs $ 16,000 and is expected to generate cash inflows of Rs.
Consider the time value of money for the below cases:
a. A project costs $ 16,000 and is expected to generate cash inflows of Rs. 4,000 cach 5 years. Calculate the Interest Rate of Return.
b. Suppose you deposited the 1,000 in 4 payments of 250 cach at the end of Years 1, 2, 3 and How much would you have in your account at the end of Year 4, based on 8 per cent annual compounding?
c. Assume that you want to borrow 100,000 from your local bank to help your business. Your bank charges interest at an 8 per cent annual rate. If you wanted to repay the borrowing after year, how much would you have to pay?
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