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Please help me answer the attached questions. There is no word limit. OQ3.1.Assume that you invest $100 at time zero and that your investment is
Please help me answer the attached questions. There is no word limit.
OQ3.1.Assume that you invest $100 at time zero and that your investment is worth $110 one period later. A. Did you make any money? How much in dollars? How much in percent return on investment? B. Use the rate of return on investment from your previous answer as the discount rate and compute what the NPV of your investment was. What is the NPV? Did you make any money? C. What does this say about a zero-NPV investment? OQ3.2.What is an annuity (in the 'simple' time value of money time line context, i.e. not as an insurance contract context, though it has similar characteristics, thus the annuity name)? Fill in the blanks: An annuity has equal ______, over equal ______ for a finite amount of time. OQ3.3.Delayed Annuity: A delayed annuity is simply an annuity that is delayed, i.e. the first payment does not begin until some point in the future, such as end of period \"t\". How would one compute the present value of a delayed annuity? Is this a \"single step\" or a \"2 step\" problem? Explain. For example, what is the PV of a delayed 10 period annuity of $150 per period if the discount rate is 7% and the first payment is received at the end of period 15Step by Step Solution
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