Question

1. Ethan just hit the jackpot in Las Vegas and won $ 35,000! If he invests it now at a 10% interest rate, how much will it be worth in 15 years?
2. Trent would like to have $ 3,500,000 saved by the time he retires in 30 years. How much does he need to invest now at a 12% interest rate to fund his retirement goal?
3. Assume that Maria accumulates savings of $ 2 million by the time she retires. If she ­invests this savings at 10%, how much money will she be able to withdraw at the end of each year for 20 years?
4. Ashley plans to invest $ 3,000 at the end of each year for the next eight years. Assuming a 14% interest rate, what will her investment be worth eight years from now?
5. Assuming a 12% interest rate, how much would Vivienne have to invest now to be able to withdraw $ 15,000 at the end of each year for the next ten years?
6. Nick is considering a capital investment that costs $ 485,000 and will provide the ­following net cash inflows:

Year Net Cash Inflow
1................................................................................................... $ 300,000 2................................................................................................... $ 206,000 3................................................................................................... $ 100,000
Using a hurdle rate of 8%, find the NPV of the investment.
7. What is the IRR of the capital investment described in Question 6?




$1.99
Sales26
Views373
Comments0
  • CreatedAugust 27, 2014
  • Files Included
Post your question
5000