Part 1:

What is the present value of the following set of cash flows if the discount rate is 13.6%? (the cash flows occur at the end of each period) (round answer to nearest penny and enter in the following format 12345.67) Year 0 cash flow = -1800 (a negative cash flow) Year 1 cash flow = 1000 Year 2 cash flow = 1500 Year 3 cash flow = 1400 Year 4 cash flow = 1300

Answer:

Part 2:

An insurance company is offering quarterly payments of $820 for the next9 years in exchange for a one-time payment of $18,000 today. What is the per annum rate of return on this offer? (Round to nearest 100th of a percent and enter your answer as a percentage, for example, as 12.34)

Answer: