Create a 350-word memo to management including the following: Describe the use of internal rate of return (IRR), net present value (NPV), and the payback method in evaluating project cash flows. Describe the advantages and disadvantages of each method. Calculate the following time value of money problems:

1. If you want to accumulate $500,000 in 20 years, how much do you need to deposit today that pays an interest rate of 15%?

2. What is the future value if you plan to invest $200,000 for 5 years and the interest rate is 5%?

3. What is the interest rate for an initial investment of $100,000 to grow to $300,000 in 10 years?

Answer rating: 100% (QA)

1 PVfv1rn Fv500000 r 15 n 20 PV 500000115... View the full answer