Question
please show your works Question 10 (1 point) Suppose that one year from now you will receive $940. At the end of each of the
please show your works
Question 10 (1 point) Suppose that one year from now you will receive $940. At the end of each of the next four years you will receive a payment that is 5% bigger than the prior payment. Following year five you will receive a payment at the end of every year that is 4% larger than the prior payment. If the cost of capital is 8% what is the this stream of cash flows worth today
11/ What constant payment for the next 10 years (starting 1 year from now, 10 payments) would be equivalent to receiving $500 every other year starting 10 years from now. Assume the annual cost of capital is 9%.
Question 12 (1 point) Suppose you own two assets with the following payouts. (1) $940 at the end of every year starting 1 year from now. The annual cost of capital for these cash flows is 5%. (2) $150 one year from now and a cash flow that is 2% larger than the prior cash flow every year thereafter. The annual cost of capital for these cash flows is 7%. What is the weighted average cost of capital of this two asset portfolio? (enter your answer as a percent, e.g. 2.51. Do not include the "%" sign)
. Question 13 (1 point) Suppose that you will need to save $750000 over the next twenty years to retire comfortably. What constant annual payment (20 payments) will you need to make to save this amount if the you can earn 8% annually?
Question 14 (1 point) Suppose that you take out a loan for $230000 to purchase a house. You are required to make monthly payments, and the APR is 6%. How much interest will you end up paying over the life of the loan (30 year mortgage
Question 15 (1 point) Suppose that you are evaluating the following investment opportunity. At the end of the the next five years you estimate that you will receive the following cash flows, $550, $350, $450, $250, and $750. At the end of every year following year five you will receive a cash flow that is 1% larger than the prior cash flow. If the cost of capital is 8% how much should you be willing to invest in this opportunity
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