How much would you be willing to pay for the investment

Assignment Help Financial Management

Reference no: EM13928540

1. Construct a loan amortization schedule for a 3-year, 11 percent loan of $30,000. The loan requires three equal, end-of-year payments.

2. Mitchell Investments has offered you the following investment opportunity:

¦ $6,000 at the end of each year for the first 5 years, plus

¦ $3,000 at the end of each year from years 6 through 10, plus

¦ $2,000 at the end of each year from years 11 through 20.

a. How much would you be willing to pay for this investment if you required a 12 percent rate of return?

b. If the payments were received at the beginning of each year, what would you be willing to pay for this investment?

Reference no: EM13928540

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