EvanEvan

would like to have $3,500,000

saved by the time he retires in 40years. How much does he need to invest now at a 10% interest rate to fund his retirement goal?

Assume that

NancyNancy

accumulates savings of $ 2million by the time she retires. If she invests this savings at 12%, how much money will she be able to withdraw at the end of each year for 20 years?

ChuckieChuckie

is considering a capital investment that costs

$ 520 comma 000$520,000

and will provide

net cash inflows for three years.

Using a hurdle rate of

10%

find the NPV of the investment.

What is the IRR of the capital investment described in Question 6?

The IRR is the interest rate at which the investment

NPV equals 0.NPV = 0.

We tried

1010%

in question 6, now we'll try

1212%

and calculate the NPV.