Question: Please answer those question with round first two decimals You can invest in a stream of cash flows that requires a $20,000 investment today and
Please answer those question with round first two decimals




You can invest in a stream of cash flows that requires a $20,000 investment today and promises to pay $3,000 for the next 3 years and $8,000 for the subsequent 3 years. If you have a cost of capital of 5% what is the net present value of this project? You can enter into a contract that promises to pay you $800 in 5 years. If you require a 8% rate of return on your investments, what would you be willing to pay for this contract? Your credit union offers a one-year certificate of deposit that promises a 6% annual yield. You deposit $5,000 today, what will the bank pay you in one year? You enter into a contract that promises you 8 annual payments of $2,400. Your required rate of return on your investments is 7%. What would you be willing to pay for the stream of cash flows today
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