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Net present value | Accounting homework help

  1. A project has an initial cost of $60,000, expected net cash inflows of $10,000 per year for 8 years, and a cost of capital of 12%. What is the project’s NPV? Show your work.
  2. A project has a required return of 12.6 percent, an initial cash outflow of $42,100, and cash inflows of $16,500 in Year 1, $11,700 in Year 2, and $10,400 in Year 4. What is the net present value?
  3. Your bank will pay you an interest rate of 0.077 percent compounded weekly. You want to have $20,000 in 6 years. How much will you have to deposit today? Assume 52 weeks per year.
  4. What is the present value of receiving a single payment of $15,000, 5 years from now in a world where the cost of borrowing is 8% per year?
  5. If you wish to accumulate $150,000 in 10 years, how much must you deposit today in a bank account that pays an annual interest rate of 12%?
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