IV. Mr. Eduardo Aged his employer Jurasic Enterprises offers an opportunity to retire at this time. They offer the following options to Aged People:

to. $ 60,000 in five years.

b. $ 7,000 a year for the next ten years.

Aged man wants a 7% annual return. Which option should Aged People accept because it offers the highest present value?

V. A company is considering building a new factory to produce aluminum bats. The project requires an original investment of $ 5,000,000 and will produce an NCF of $ 1,000,000 a year for the next eight years. Based on the above, compute the NPV that the company could obtain if it expects:

to.

a. 9 percent performance.

b. 11 percent performance.

c. 13 percent performance.

d. 15 percent performance.