Question: please not the exel answer but writing answer Il Calculation (30%) 1) You have an investment opportunity in Japan. It requires an investment of $3.6

please not the exel answer but writing answer
please not the exel answer but writing answer Il Calculation (30%) 1)

Il Calculation (30%) 1) You have an investment opportunity in Japan. It requires an investment of $3.6 million today and will produce a cash flow of W410 million in one year with no risk. S uppose the risk-free interest rate in US is 3%, the risk-free interest rate in Japan is 4%, and the current competitive exchange rate is 118 per $1. What is the NPV of this investment? Is it a good opportunity? 2) Your oldest daughter is about to start kindergarten at a private school. Tuition is $16 ,000 per year, payable at the beginning of each semester. You expect to keep your daughter in private school through high school. You expect tuition to increase at a rate of 20% per year over the 12 years of her schooling. What is the PV of the tuition payments if the interest rate is 20% per year? 3) You have just purchased a home and taken out a $500,000 mortgage. TI has a 15-year term with monthly payments and an APR of 8%. a. How much will you pay in interest, and how much will you pay in princ the first year? b. How much will you pay in interest, and how much will you pay in principal, during the 12th year

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!