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Q5. An investment of $44,000 one year ago and $48,000 now are equivalent at what interest rate? (10 points) Q6. Construct a cash flow
Q5. An investment of $44,000 one year ago and $48,000 now are equivalent at what interest rate? (10 points) Q6. Construct a cash flow diagram to find the equivalent present worth of a future outflow of $50,000 in year 5 at an interest rate of 5% per year. (5 points) Q7. Construct a cash flow diagram for the following cash flows: $20,000 outflow at time zero, $4000 per year outflow in years 1 through 3 and $10,000 inflow in years 4 through 8 at an interest rate of 3% per year, and an unknown future amount in year 8. (10 points) Q8. A start-up chemical company has established a goal of making at least a 8% per year rate of return on its investment. If the company acquired $70 million in venture capital, how much did it have to earn as an interest in the first year? (10 points)
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