Question
Investment Multiple and Cash Flow Analysis. An initial capital investment I is used for a project, with r = 8%/yr. a. Given F = m
Investment Multiple and Cash Flow Analysis. An initial capital investment I is used for a project, with r = 8%/yr. a. Given F = m I, where the value of m is the projects multiple,
a. find m if project duration is 15 years.
b. Find the value of I such that $20m is achieved after 10 years as a bullet investment.
c. Let I =F. Alpha is the required percentage of F to be deposited today, to achieve any future value F after n years. Find for n=8 years.
d. Determine the value of an initial investment I of a project which requires yearly withdrawals of $1.23m for 5 years.
e. Determine the value of yearly annuity withdrawals for 6 years, as a percentage of any initial endowment capital I.
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