Question
Please show financial calculator entries. 1. How much are you willing to pay today for an investment that returns $800 each year at the end
Please show financial calculator entries.
1. How much are you willing to pay today for an investment that returns $800 each year at the end of each year for the next 6 years if you use 5% discount rate?
2. What is the present value of the following cash flows using a 12% discount rate?
Year 1: $2,000
Year 2: $2,000
Year 3: $2,000
Year 4: $3,000
Year 5: ($4,000) parenthesis means this amount is a withdrawal
3. Your broker offers to sell you a note for $13,250 and pays $2,345.05 per year for 10 years. If you buy the note, what is the interest rate youll be earning?
4. A project under consideration has the following cash flows:
Year 0: ($28,000)
Year 1: $12,100
Year 2: $15,100
Year 3: $11,100
What is the Net Present Value (NPV) if the project has a required rate of return of 12%?
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