Question
Please solve these problems in an Excel file and share with me your Excel solutions. Do not hard code your answers as I want to
Please solve these problems in an Excel file and share with me your Excel solutions. Do not hard code your answers as I want to be able to verify your formulas. 4. You want to buy a stock that will give you $100 every quarter indefinitely. Assuming 10% interest rate, what should the value of stock today? 5. You are investing in a project with cash flows of -$45,000 in year 1, -$30,000 in year 2, $80,000 in year 3, $50,000 in year 4, and from year 5 onwards you will get $70,000/year indefinitely. What is the present value of this project? 6. You have three investment options: a. Receiving $1,200/month starting today for 5 years. b. Receiving $2,240.69/quarter for seven years. c. Receiving $6,538.27/year indefinitely. If annual interest rate is 12%, which options will choose and why? If you are not given time or int rate for any of the questions, you can assume any time period or int rate and solve the question. I will mark you for the procedure.
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