- Five years from now an investment will be worth $5,000. If we invest it at 4% interest, compounded yearly, for five years, what is the present value of this investment?
- What is the Net Present Value of the following cash flow stream? Year Cash flow 0 -$1,710 1 $922 2 $968 3 $404 4 $591 Assume an interest rate of 16%.
- What is the Net Present Value of the following cash flow stream? Year Cash flow 0 -$6,119 1 $1,333 2 $1,395 3 $1,160 4 $2,709 Assume an interest rate of 20%
- What is the present value of $1,150 to be received 13 years from now discounted back to the present at 3 percent?
- You are offered 3,000 Lira today, 5,000 Lira in 4 years, or 7,000 in 6 years. Assuming that you can earn 20% annually on your money, which offer should you choose? Show your calculation.