A B D G 6 7 Question 1 & Calculate the discount factors given the following term structure of interest rate: 9 10 Period Spot Rate DF 11 1 2.13% 12 2 2.88% 13 3 3.01% 14 4 3.63% 15 5 4.25% 16 17 18 Question 2 19 Calculate the NPV and IRR of the following series of cash flows. Assume interest rates are the same as in question #1 above. 20 Period Cash Flow NPV IRR 22 0 $ (250,000.0) 23 1 S 55,000.0 24 2 $ 55,000.0 25 3 $ 55,000.0 26 4 $ 55,000.0 27 $ 62,500.0 28 29 30 Question 3 31 The relationship between the discount rate and NPV is inverse. True of False? 32 33 Type Answer here 34 35 36 Question 4 37 Assume a project has the following series of cash flows. The opportunity cost of capital is 6.0%. Should the company proceed with the projec 38