Walt is evaluating an investment that will provide the following returns at the end of each of the following years: year $1,$$$12,600$; year $2,$ $$10,100$; year $3,$$$7,600$; year $4,$$$5,100$; year $5,$$$2,600$; year $6,$$$0$; and year $7,$$$12,600.$ Walt believes that he should earn $12$ percent compounded annually on this investment.

Required:

a$.$ How much should he pay for this investment?

b$.$ How much should he pay if he expects to earn an annual return of $9$ percent compounded monthly?

Note: For all requirements, do not round PV factors and round your other intermediate calculations and final answer to the nearest whole dollar amount.

a$.$ Value of investment at $12\%$

b$.$ Value of investment at $9\%$Walt is evaluating an investment that will provide the following returns at the end of each of the following years: year $1,$$$12,600$; year $2,$ $$10,100$; year $3,$$$7,600$; year $4,$$$5,100$; year $5,$$$2,600$; year $6,$$$0$; and year $7,$$$12,600.$ Walt believes that he should earn $12$ percent compounded annually on this investment.

Required:

a$.$ How much should he pay for this investment?

b$.$ How much should he pay if he expects to earn an annual return of $9$ percent compounded monthly?

Note: For all requirements, do not round PV factors and round your other intermediate calculations and final answer to the nearest whole dollar amount.

a$.$ Value of investment at $12\%$

b$.$ Value of investment at $9\%$

John is considering the purchase of a lot. He can buy the lot today and expects the price to rise to $$15,900$ at the end of $10$ years. He believes that he should earn an investment yield of $8$ percent compounded annually on his investment. The asking price for the lot is $$8,000.$

Required:

a$.$ What is the internal rate of return compounded annually on the investment if John purchases the property for $$8,000$ and is able to sell it $10$ years later for $$15,900?$

Note: Do not round your intermediate calculations and round your final answer to $2$ decimal places.

b$.$ Should he buy the lot?

$\backslash$table$[[$a$.$ Internal rate of return,,$\%$