Use Excel formulas TVM

7.) How much would you pay to participate in a real estate project that pays $0 for the first two years and $1,500,000 for the following three years if you can earn a 9.00% return on other investments of similar risk?

8.) You are evaluating an investment that will provide the cash flows listed below at the end of each year. You believe that you should earn 11.50% percent compounded annually on this investment. How much would you be willing to pay for this investment? Year 1 2 3 4 5 CFs 150,000 200,000 275,000 350,000 3,750,000

9.) An investment is expected to produce the following annual year-end cash flows: Year 1, $32,500; Year 2, $35,000; Year 3, $37,500; Year 4, $40,000; and Year 5, $45,000. If the investment costs you $165,000 today what is its expected annual internal rate of return, compounded annually? Year 0 1 2 3 4 5 CFs -165,000 32,500 35,000 37,500 40,000 45,000

10.) Recalculate the IRR for the previous question assuming the cash flows are all received in the beginning of the year. Year 0 1 2 3 4 5 CFs -165,000 32,500 25,000 37,500 40,000 45,000 IRR 7% ??