Question: 1. If you expect to have a net present value of 40,000 pesos. How much should you receive in year 1? Use 4.5% discounting rate?

1. If you expect to have a net present value of 40,000 pesos. How much should you receive in year 1? Use 4.5% discounting rate?

Investment Year 0 Year 1 Year 2 Year 3

Cashflows 12,500 ? 15,700 17,300

2. How much is your total investment in year 4 if the interest rate is 3.6%?

Investment Year 0 Year 1 Year 2 Year 3 Year 4

100,000 95,600 88,500 74,870 ????

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