Q1. If you will receive $7 next year, and the prevailing interest rate [or cost of capital] for investing in any type of project is 40%, what do you value this $7 as of today?

Q2. If you will receive $7 in two years, and the prevailing (alternative) interest rate [or cost of capital] is 40%/year, what do you value this $7 as of today?

Q3. If you will receive $7 next year and another $7 in two years, and the prevailing (alternative) interest rate [or cost of capital] is 40%, do you have the equivalent of $14?

Q4. If you will receive $7 next year and another $7 in two years, and the prevailing (alternative) interest rate [or cost of capital] is 40% per year, what would you value this project as of today? What formula are you using?

Q5. If this project costs $8, should you take this project?