A store offers two payment plans. Under the installment plan, you pay $20\%$ down and $20\%$ of the purchase price in each of the next $3$ years. If you pay the entire bill immediately, you can take a $10\%$ discount from the purchase price.

Which is the better deal if the interest rate is $5\mathrm{.}1\%?$

How will your answer change if the four payments on the installments do not start until the end of the year?

Thus, there are now two future cash flows$--$a cash flow of C$1=$ $$33,750$ at the end of one year and a further cash flow of C$2=($$$33,750+$ $$870,000)=$ $$903,750$ at the end of the second year.

Calculate the NPV of the office building venture at interest rates of $5,10,$ and $15\%.$

At what discount rate $($approximately$)$ would the project have zero NPV$?$If the project requires an investment of $$1,025,$ what is its NPV$?$