Please help me with this homework!

The questions are on the pdf file

I am struggling with time value of the money. I don't understand the most of the concepts. I really need help for this project. Thanks!

Homework 2 Time Value of Money Exercise Objective: To learn TVM calculations in financial calculator and Excel Due date: Friday, Mar. 4, by 09:00PM. Late submission is not allowed. Submit: Submit on D2L. Upload completed files under Homework 2 in Dropbox. 1. Solve the followings using a financial calculator. Submit your answers in Excel. Show calculator inputs (ie. N, PV, etc.) to get partial credit. 1. If you deposit $1,500 today how much it will be worth in 20 years if interest is compounded annually at a rate of 5%? 2. How much would you pay for the right to receive $12,000 at the end of 15 years if you can earn 15% return on other investments of similar risk? 3. How much would you pay today to receive $5,000 in one year and $7,000 in the second year if you can earn 10% return on other investments of similar risk? 4. What constant amount invested at the end of each year at 10% annual interest rate will worth $20,000 at the end of five years? 5. How much would you pay for the project which gives nothing for the first 10 years and $2,500 for the following 10 years if you can earn 13% return on other investments of similar risk? 6. What is the NPV of $600 received at the end of each of the next four years and $1,500 received at the end of fifth year if your required return is 10%? 7. If you purchased a vacant land five years ago for $1,350,000, assuming no income or holding costs during the period, how much you should sell it to yield a 12% of annual return on your investment? 8. Calculate the present value of following cash flows discounted at 13%: $30,000 today, $50,000 at the end of first year, -$10,000 at the end of the second year, $0 at the end of third year, and $70,000 at the end of fourth year. 2. Solve the following questions using TVM formulas in Excel. If you just put numbers, you will get zero. Show your work to receive full credit. 1. You won a building that a local business owner has offered to rent for next 10 years. The business owner has offered to pay $40,000 today or pay $6,400 at the end of each of next 10 years. If your required rate of return is 10%, which payment should you accept? 2. You are able to buy an investment today for $1,000 that gives you the right to receive $438 in each of the next three years. What is the IRR of this investment? 3. Calculate the present value of cash flows given below at 10% discount rate. What happens to the present value if the discount rate increases to 20%? Year Cash Flow 1 4,000 2 5,000 3 3,000 4 2,000 4. Calculate the IRR and the NPV for the following cash flows. Assume 15% discount rate Year Project 1 Cash flow -$20,000 1,000 3,000 4,000 12,000 15,000 0 1 2 3 4 5 Project 2 Cash flow -$20,000 12,000 15,000 3,000 4,000 1,000 5. How much would you pay for an investment that provides$2,000 at the end of first year if your required rate of return is 10%? How much would you pay if your required rate of return is 8% and 12%? 6. You want to invest one of the investments options: real estate, bonds, or zero coupon bonds. If you are going to invest $20,000, which gives you the highest NPV? Assume 10% discount rate for all the investments. Real estate Bond Zero coupon 1 2,600 2,000 0 2 2,600 2,000 0 Year 3 2,600 2,000 0 4 2,600 2,000 0 5 18,000 22,000 36,000 7. If you buy a building for $50,000, and you expect it to appreciate 12% per year in value. Then how much the building will be worth in 10 years from now? 8. If you deposit $100 at the end of each of next 10 years at 4.5% interest rate, what will be the worth of this series of deposits at the end of year 10? 9. Your father will convey a property to you in 10 years. If the property is expected to be worth $500,000 when you receive it, what is the present value of the property? Your discount rate is 15%. 10. If your tenant pays you a rent of $24,000 a year for 10 years, what is the present value of the series of future payments discounted at 10% annually? 11. You are at retirement age and one of your benefit options is an annuity of $75,000 for 20 years. What lump sum settlement, if paid today, would have a same value as the annuity? Discount rate is 12%. 12. You are considering about buying a vacant lot. You expect to be able to re-sell it after 10 years from now at $1,000,000. If your discount rate is 13%, how much would you pay for it? What is the expected annual return on this investment over the 10-year investment period if you purchase the land at $340,000 today? 13. You are going to invest $ 300,000 on the real estate investment project which generates following cash flows. Year 1 2 3 4 5 Cash flow 100,000 100,000 100,000 100,000 100,000 Assume 11% discount rate and calculate the NPV of this project. What is the IRR of this investment