Hone Insert Draw Page Layout Formulas Data Review View Help Copy Calibri 11 23 Wrap Text BI-A : Merge & Center Foamat Painter board Font Alignment B H fx C D E F ircise 1 If you purchase a machine and borrow $18000, what will your approximate monthly payment be if you pay back the loan over 10 years. Assume a 6% interest rate. ercise 2 If you need $80000 in 15 years, how much should you set aside today? Assume an 3% annual return? ercise 3 You are considering investing $140000 in a project that will generate cash flows of $24000 per year for 8 years and have a salvage value of $20000. If your cost of capital is 11%, what is the net present value (NPV) of the investment? (Put a minus in front of the number if your NPV is negative.) Should you make the investment? 7 1-6 8 10-20 #9 Cash Flow 21-24 #25 Extra Credit PV Table FVA Table FV Table