1. In 5 years you will get $310. What is the present value if it is invested at

1. 10%

2. 15%

2. You have $450 today. How much will you get if you invest is for 7 years at

1. 10%

2. 15%

3. You want $590 each year for the next 20 years. How much do you need to invest today a

1. 10%

2. 15%

4. What is the NPV of a $200 investment that returns $40 per year for 7 years AND do you accept this investment? Use 12% RRR.

5. What is the NPV of a $200 investment that returns $40 per year for 7 years and has a salvage value of $20 AND do you accept this investment? Use 12% RRR.

6. What is the NPV of a $200 investment with the following cash flows: Yr 1 $20, Yr 2 $40, Yr 3 $45, Yr 4 $50, Yr 5 $45, Yr 6 $40, Yr 7 $40? Use 8% RRR.

7. What is the NPV of a $200 investment with the following cash flows: Yr 1 $20, Yr 2 $40, Yr 3 $45, Yr 4 $50, Yr 5 $45, Yr 6 $40, Yr 7 $40? There is a salvage value of $20. Use 8% RRR.

8. What is the NPV of a $200 investment with the following cash flows: Yr 1 $20, Yr 2 $40, Yr 3 $45, Yr 4 $50, Yr 5 $45, Yr 6 $40, Yr 7 $40? There is a salvage value of $20. Use 9% RRR.

9. You are considering an investment of $200 that pays you $40 per year for 6 years. Your RRR is 8%. What is the approximate IRR AND do you accept this investment?

10. You are considering a $200 investment with the following cash flows: Yr 1 $20, Yr 2 $40, Yr 3 $45, Yr 4 $50, Yr 5 $60. What is the payback period for this investment?