Question
You are considering buying a loan from a local bank with the following features: Loan principal: $10,000 Term: 10 years Stated rate: 5% (paid annually)
You are considering buying a loan from a local bank with the following features:
Loan principal: $10,000
Term: 10 years
Stated rate: 5% (paid annually)
Current market value: 9,500
What rate of return can you expect from this investment?
What is the NPV of the project with the following cash flows?
Year 0: -$500
Year 1: $200
Year 2: $400
Year 3: $300
The WACC for the project is 10%.
Suppose you can save $910.42 annually, and you need to have $12,000 in 10 years. What rate of interest would you have to earn to reach your goal?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
