7 A Marketing Training Course Will Cost 10 000 It Is Estimated That This Will Increase Profits After 2 Years By 3000 1 (33.13 KiB) Viewed 69 times
7) A marketing training course will cost $10,000. It is estimated that this will increase profits after 2 years by $3000, by $5000 after 3 years, by $4000 after 4 years, and by $3000 after 5 years. Assume a discount rate of 9.5%. Net present value is Internal rate of return is Show your work: 8) A company has an opportunity to undertake an improvement in their customer tracking system. The new system will cost $24,000, all due at installation. The sales department has determined that this will not result in any return in the first or second year, but will result in returns of $10,000 in the 3rd, 4th, 5th and 6th year. Returns are not counted beyond this since the value of the system is uncertain at this point. Assume the discount rate for the company is 8% annually. Net present value is Internal rate of return is (4 significant digits: xx.xx%) Show your work: (4 significant digits: XX.XX%)
6) After World War I in 1918, the Weimar Republic of Germany had 197% annual inflation annually for five years. Calculate the value of 20 paper Marks starting in January of 1918, after five years with this interest level, assuming compounding monthly. Show your work: Value is
3) What are the monthly payments required for a loan of $18,000 at 9% annual interest for four years? Show yoru work: 4) Calculate both the principal payment and interest payment for the 5th, 10th and 20th payment. 5th 10th 20th Payment is: Show your work: Principal Interest
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