managerial: time value of money & capital budgeting

134 135 Exercise 10 136 30 years ago, Z Co set aside $30000 in an account that earned an 8% annual return. What is that amount worth today? Submit your answer. 139 140 149 150 Exercise 11 You are considering investing $70000 in a project that will generate cash flows of $12000 per year for 12 years. If your cost of capital is 10%, what is the net present value (NPV) of the investment? Submit your answer. 151 154 155 156 157 158 Should you make the investment? 161 102 105 164 Exercise 12 You are considering investing $280000 in a project that will generate annual cash flows of $26974.92 for 15 years. What is the internal rate of return (IRR) for this project? 165 Submit your answer. 168 169 170 171