# Compute the Net present value | Accounting homework help

You are given an investment to analyze. The cash flows from this investment are:

 End of year 1 \$27,950 2 \$1,470 3 \$26,100 4 \$20,590 5 \$9,350

What is the present value of this investment if 15 percent per year is the appropriate discount rate?

An investment vehicle promises to pay you \$1,000 in year 1, \$2,000 in year 2, \$3,000 in year 3, and \$4,000 in year 4, provided you deposit \$X with them today.

If this is a fair deal and the interest rate is 9%, how much is X?

An investment will pay \$150 at the end of each of the next 3 years, \$250 at the end of Year 4, \$300 at the end of Year 5, and \$500 at the end of Year 6. If other investments of equal risk earn 11% annually, what is its present value? Its future value?

An investment will pay \$50 at the end of each of the next 3 years, \$250 at the end of Year 4, \$400 at the end of Year 5, and \$550 at the end of Year 6.

a. If other investments of equal risk earn 6% annually, what is its present value? Round the answer to the nearest cent.

b. If other investments of equal risk earn 6% annually, what is its future value? Round the answer to the nearest cent.

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