How much would loan someone today

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Question 1: You are trying to decide whether to buy a machine today. The machine will generate $12,000 cash at the end of each of the next 5 years. If you must have a 10% rate of return on your investments, what is the most you would pay for this machine?

Question 2: Given a 10% interest rate compounded semiannually, the dollar amount available on September 1, 2015, assuming 12 semiannual deposits of $2,000 each with the first deposit made on March 1, 2010, is:

Question 3: How much would you loan someone today, January 1, 2010, if they promised to pay you $10,000 on January 1, 2012 and $20,000 on January 1, 2015 and you want a 9 percent return on your investment that is compounded annually?

Reference no: EM132566373

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