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Unformatted text preview: every month if you can receive a 12% return on investment? (5 pts.) 6) A mutual fund is offering investments that yield 9%. You check the Treasuring fund rate and find that Tbills are paying 6%? a. What is the approximate real return on the investment? (5 pts.) b. What is the nominal rate? (5 pts.) 7) You have a chance to buy this investment for $50,000 that has the following cash flows. You feel you should receive at least an 8% return. What is the net present value of this investment? Should you buy it? What is the IRR? (10 pts.) Year Cashflow 1 $10,000 2 $23,000 3 $12,000 4 $15,000 8) You can invest $4,000 and receive $12,000 back in 9 years. What is your return on investments? (5 pts.) 9) (Essay) Discuss the various financial tasks you can now approach with the present value tools covered during this section of the course? (10 pts.)...
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This document was uploaded on 02/22/2011.
 Spring '09
 Interest

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