An investment is expected to pay nothing for 5 years, then will pay $14,000 per year for 4 years. If your required rate of return is 6%, what is the maximum you should be willing to pay for this investment?
What is the NPV for an investment with an initial outlay now of $476, and expected cash inflows of $187, $216, and $337 at the end of years one through three, respectively? The discount rate is 10.3%.
Cheryl wants to have $4,300 in spending money to take on a trip to Disney World in three years. How much must she deposit now in a savings account that pays 4% per year to have the money she needs in three years?
You have provided your friend with a service worth RM8,500. Your friend offers you the following cash flow instead of paying RM8,500 today. Should you accept his offer if your opportunity cost is 8 percent?
