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On May 27, 2015 Paul opened an account with $25,000.00 and then added $25,000.00 to it on May 27, 2016. How much is in his

  1. On May 27, 2015 Paul opened an account with $25,000.00 and then added $25,000.00 to it on May 27, 2016. How much is in his account today if the interest rate has been 6.30%?
  2. Hunter's discount rate is 11.20%. How much are the following cash flows of his compensation plan worth: $28,200.00 on May 27, 2022 and $36,100.00 on May 27, 2023?
  3. Valero is considering investing $436,000.00 today for a quick project that is expected to provide cash flows of $224,000.00 on May 27, 2022, $181,000.00 on May 27, 2023, and $224,000.00 on May 27, 2024. If the appropriate discount rate is 6.40%, what is the net present value of the project?
  4. Apple is considering investing $418,000.00 today for a quick project that is expected to provide cash flows of $162,000.00 on May 27, 2022, $146,000.00 on May 27, 2023, and $174,000.00 on May 27, 202 What rate of return is the project offer?
  5. KPMG is considering a project that will provide cash flows of $148,000.00 on May 27, 2022, $264,000.00 on May 27, 2023, and $309,000.00 on May 27, 2024. If the appropriate discount rate is 9.70%, how much are these cash flows worth?

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