Question 11 (2.25 points) What is the internal rate of return (IRR) for a project that costs $50,000 today. This project is expected to provide the following net cash flows at the end of each year: Year 1 - 55,000; Year 2 - $20,000; Year 3 - $20,000; Year 4 - $30,000? a 12.5% 14.82% 15.65% Not enough information to compute the IRR 24.89% 12.83%
Question 12 (2.5 points) What is the most you should pay to receive the following cash flows if your required rate of return is 10 percent? Year 1-3 $5,000 Year 4-6 $8,000 Year 7-9 $12.000 Years 10 515,000 $55,687.75 $40,639.31 $52,439.73 $50,009.84 $47,202.31 $46,878.34
Question 13 (2.5 points) You are 30 years old and plan to retire at age 70, which is 40 years from now. You would like to have $1.0 Mn at the end of 40 years (which is when you retire). What should your monthly payment be, if you believe you can earn 12% compounded monthly? $213.61 $85.00 $135.05 $46.61 $158.13 $61.35
Question 14 (3 points) Jane's daughter will be going to college at the end of six years. She wishes to have a fund that will provide her daughter $15,000 per year (end of each year) for each of her four years (which is end of years 7, 8, 9, 10) in college How much must you put into that fund today if the fund will cam 8 percent in each of the 10 years? $49,681.90 $18,465.79 $17,878.80 $24,360.12 $31,308.03 Previous Page Next Page Page 14 of 15
Question 15 (3.5 points) After graduation, you plan to work and save for 10 years and then start your own business. You currently have $10,000 which you will invest immediately (year 0). In addition, you expect to save and deposit $10,000 a year for the first 5 years (year through year 5) and $15,000 annually for the following 5 years (year 6 through year 10). If the account carns 10% compounded annually, how much will you in your account have when you start your business 10 years from now? S338,223.00 $247,442.01 $215,837.17 $319,586.87 $208,535.87
Question 11 (2.25 points) What is the internal rate of return (IRR) for a project that costs $50,000 today. This project
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