Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 11 Match the IRR with the cash flows. CFO: -2,053 CF1: 605 CF2: 536 CF3: 673 CF4: 630 - CFO: -1,685 CF1: 601 CF2:

image text in transcribed

QUESTION 11 Match the IRR with the cash flows. CFO: -2,053 CF1: 605 CF2: 536 CF3: 673 CF4: 630 - CFO: -1,685 CF1: 601 CF2: 520 CF3: 528 CF4: 685 C- CFO: -2,053 CF1: 559 CF2: 535 CF3: 549 CF4: 573 - CFO: -1,841 CF1: 598 CF2: 554 CF3: 535 CF4: 546 C CF0:-1,538 CF1: 681 CF2: 652 CF3: 502 CF4: 592 A. 22.1% B. 3.1% C. 14.1% D. 8.3% E. 7.2% QUESTION 12 Fred has $55,000 in student loans, which carry an annual interest rate of 8.7 percent. He wants to pay them off early and decides to pay $1,000 per month until the loans are paid off. How many months will it take to pay off these loans? (Show your answer to two decimals, e.g., 12.34; fractional months are okay) QUESTION 13 Fred is setting up a trust fund for his son. The trust will pay his son $5,000 each year for the next 30 years. If the trust fund earns 8 percent interest per year, how much does Fred have to put into the trust fund today in order to fund the series of annual payments? (Show your answer as a positive number)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Version 3.1

Authors: Joe Ben Hoyle, C.J. Skender, Leah Kratz

1st Edition

1453339442, 9781453339442

More Books

Students also viewed these Accounting questions