1. A payment of $10,000 is to be made in the future. The interest rate 3%....

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1. A payment of $10,000 is to be made in the future. The interest rate 3%. Is this payment worth more if it is paid in 5 years or 10 years? How much more is it worth? 2. Jack's Lock and Key is considering remodeling. It estimates that the remodeling will cost $6,000 and that as a result revenues will rise by $3,000 the first year, $2,500 the second year, $1,500 the third year and have no effect after then. If the interest rate is 5%, should Jack's remodel? Defend your answer by showing your work. 3. Suppose you invest $10,000 at 7% interest to be withdrawn by your heirs in 100 years, According to the rule of 70, approximately how much will your heirs be able to withdraw? 1. A payment of $10,000 is to be made in the future. The interest rate 3%. Is this payment worth more if it is paid in 5 years or 10 years? How much more is it worth? 2. Jack's Lock and Key is considering remodeling. It estimates that the remodeling will cost $6,000 and that as a result revenues will rise by $3,000 the first year, $2,500 the second year, $1,500 the third year and have no effect after then. If the interest rate is 5%, should Jack's remodel? Defend your answer by showing your work. 3. Suppose you invest $10,000 at 7% interest to be withdrawn by your heirs in 100 years, According to the rule of 70, approximately how much will your heirs be able to withdraw?

Answer rating: 100% (QA)

1 A payment will have more worth with 5years compared to ten years because of higher NPV NPVFV1r t 1... View the full answer