Reference no: EM131051662
1.) Suppose that you will receive $10,000 five years from now. What is it worth today? What is it worth 3 years from today? What is it worth 10 years from today? What constant payment for the next 20 years is equivalent to receiving $10,000 five years from now? Assume the cost of capital is 10%.
2.) Suppose you plan to purchase a car. You tell the car salesperson you can pay $200 per month.
The salesperson offers you the following options.
a. A car that is worth $7,000 dollars for $200 a month for 4 years at 3% APR.
b. A car that is worth $13,000 dollars for $200 a month for 5 years at 4% APR.
c. A car that is worth $15,000 dollars for $200 a month for 7 years at 5% APR.
Which of these options is the best deal?
3.) Suppose that 2 years from now you will deposit $100 into an account paying 10% APR. In years 4, 6, ... 50 (every even year) you will deposit 105, 110.25, ... 322.51 respectively (5% growth in the deposit). In oddyears (starting year 3) 3, 5, ...49 you will withdraw $100 (no growth). How much will be in your account at the end of year 50?
4.) Suppose you are evaluating the following investment opportunity. The firm is expected to have cash flows of $100 starting one year from now and they are expected to grow by 10% each of the next 4 years. Every year following year five the cash flows will grow by 7%. Assuming the cost of capital is 8%, what is the value of this firm today?
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Study of pollution levels in paradise creek
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Summarize the article tourism investment monitor by tour
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What is the value of the call option at expiration
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What is this project equivalent annual cost
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Evaluating the investment opportunity
: Suppose you are evaluating the following investment opportunity. The firm is expected to have cash flows of $100 starting one year from now and they are expected to grow by 10% each of the next 4 years. Every year following year five the cash flow..
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Consisting of debt-common stock and preferred stocks
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Group of new customers and creating new annual sales
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Bond is interest rate you earn on your investment
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Design a simple two-story rectangular warehouse
: Draw a framing plan and typical connections for the building.
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