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Corporate finance questions, revision part 1 week 1-4, ZY . An amount of $121.000 is expected to be received one year from today at an
Corporate finance questions, revision part 1 week 1-4, ZY . An amount of $121.000 is expected to be received one year from today at an interest rate (discount rate) of 10% per year. What is the present value of $121,000? smith invests in an project and he expects to receive $100,000 at the end of one year, at a discount rate of 25% per year, how much money at least he needs to invests now? 3. If the present value of $250 expected to be received one year from today is $200, what is the discount rate? 4. An initial investment of $500 produces a cash flow $550 one year from today. Calculate the rate of return on the project. 5. An initial investment of $400,000 will produce an end of year cash flow of $480,000. What is the NPV of the project at a discount rate of 20%
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