1. Firm A has expected to receive the following cash flows from an investment. time cash flow 1 300 2 200 3 150 4 100 a.

[answerhappygod]

1. Firm A has expected to receive the following cash flows from
an investment. time cash flow
1 300
2 200
3 150
4 100
a. What is the present value of the cash flows described below
if interest rate is 10%?
b. If the investment costs $650 today, use Excel IRR to find the
internal rate of return of the investment? Should Firm A accept the
investment?
2. Firm A invests $100 million today at a rate of 10%.
a. What will be the future value in 20 years using annual
compounding.
b. Use Excel Scenario to show the future value with annual,
quarterly and monthly compounding.