- If the value of an investment is $1,500 in 12 years and the interest rate is 6%, how much is the investment worth now? What type of problem is this: lump sum or annuity?
- What is the present value of $11,000 received twenty years from today when the interest rate is 10% per year?
- What is the present value of $11,000 received ten years from today when the interest rate is 10% per year?
- Calculate the present value of a uniform series of equal payments of $5,000 at the end of each year from Year 1 to Year 12 at an interest rate of 4% per year compound annually.
- A project has an initial cost of $50,600, expected net cash inflows of $13,000 per year for 6 years, and a cost of capital of 12%. What is the project’s NPV?