What is the net present value of this project

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Q1. Using the least number of interest factors, solve for the unknown quantity. Assume equality between "benefits" & "costs" on the cash flow diagram.

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Q2. A project has a first cost of $10,000, net annual benefits of $2000, and a salvage value of $3000 after 10-years. The project will be replaced identically at the end of 10 years. Draw a cash flow diagram. What is the net present value of this project if it is financed at 15%?

Q3. The loan shark we met earlier this semester is still lending money to desperate people who are in need of immediate money. His terms for a recent loan are".. if I give you $50 today, Monday, you owe me $60 next Monday. What are the nominal interest rate per year and the effective interest rate per year?

Reference no: EM132172343

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