You are trying to fund your retirement with an immediate $($time $0)$ investment in a hedge fund.

How much money will you have in the fund $($assuming all returns are reinvested$)$ under the assumptions below?

You invest today $($time $0)$ the amount below

$PV1,000,000$

for the number of years below

and the hedge fund generates the annual return below $($annual compounding$).$

and the hedge fund generates the monthly return below $($monthly compounding$).$

$rVr\frac{}{\frac{?}{?}}$month

Consider a project with the following annual cash flows.

What is the IRR of this project?

IRR

What is the net present value $($NPV$)$ of this project at the annual discount rate $($hurdle rate, opportunity cost of capital$)$ below?

$NPV,r,10\%$

Type the number corresponding to the correct answer in the yellow box!

If you are calculating the present value of positive future cash flows using a positive discount rate, which of the following statements is false?

$1$ The present value of a growing perpetuity is infinite, regardless of at what $($finite$)$ time the perpetuity pays its first cash flow, if the growth rate exceeds the discount rate.

$2$ The present value of a growing perpetuity is negative if the growth rate exceeds the discount rate.

$3$ The present value of a cash flow is higher if the discount rate is lower.

$4$ The present value of a cash flow is lower if it is further away in time.

$5$ The present value of a stream of multiple cash flows is the sum of the present values of each of the individual cash flows.How much money will you have in the fund $($assuming all returns are reinvested$)$ under the assumptions below?

a You invest today $($time $0)$ the amount below.

PV

for the number of years below

t

$20$ years

and the hedge fund generates the annual return below $($annual compounding$).$

$12\%/$year

FV

b You invest today $($time $0)$ the amount below

PV

$1,000,000$

for the number of years below

t

$20$ years

and the hedge fund generates the monthly return below $($monthly compounding$).$

$1\%$

$/$month

FV

Consider a project with the following annual cash flows..

Time

CF

$-100$

$1$

$0$

$2$

$0$

$3$

$70$

$4$

$50$

$5$

$0$

a What is the IRR of this project?

IRR

b What is the net present value $($NPV$)$ of this project at the annual discount rate $($hurdle rate, opportunity cost of capital$)$ below?

$10\%$

NPV

Type the number corresponding to the correct answer in the yellow box!

If you are calculating the present value of positive future cash flows using a positive discount rate, which of the following statements is false?

$1$ The present value of a growing perpetuity is infinite, regardless of at what $($finite$)$ time the perpetuity pays its first cash flow, if the growth rate exceeds the discount rate.

$2$ The present value of a growing perpetuity is negative if the growth rate exceeds the discount rate.

$3$ The present value of a cash flow is higher if the discount rate is lower.

$4$ The present value of a cash flow is lower if it is further away in time.