- What is the present value of $10,863 that you will receive in 6 years if your opportunity cost of money is 6% per year?
- The use of future value to calculate the present value is called: Select one: a. compounding b. the annuity method c. discounting d. present value approach
- A project has an initial cost of $36,625, expected net cash inflows of $15,000 per year for 11 years, and a cost of capital of 11%. What is the project’s NPV?
- An investment will pay you $89,000 in four years. Assume the appropriate discount rate is 8.25 percent compounded daily. What is the present value?
- How much should be set aside today, so that it will grow to $30,000 in 15 years? The discount rate is 9%.
- True or False: For a project with a normal cash flow pattern, other things held constant, an increase in the project’s cost of capital will result in a decrease in the project’s NPV.
- How much should you invest now at 10% compounded quarterly to have $8,000 toward the purchase of a car in 5 years?
- Incremental cash flows are estimated to be in the order – $2 million, $0.5 million, $4.0 million, and $0.75 million. If the cost of capital is 8%, what is the NPV of this project?
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