This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: accomplish this goal, she will invest P at the end of 10 years in an account that earns compound interest of 20%. Determine P. 34. Calculate the present value of 1000 payable at the end of 15 years assuming compound interest at an annual effective rate of 9.5%. 35. The accumulated value of $1 invested 2 years ago less the present value of $1 to be paid in two years is equal to (4641/12100). Calculate i. 37. Kendrick Corporation invests X million today to build a factory. The factory is expected to produce the following profits: At the end of 4 years, the factory will be obsolete and will be closed. The Net Present Value of this project to Kendrick Corporation is 1 million at an interest rate of 8%. Calculate the Internal Rate of Return on this project. Answer: 27. 0.38760 28. 28. 8064.52 29. 7920.94 30. 2.5 31. 500 32. 30,000 33. 8075.28 34. 256.32 35. 10% 36. NPV=6.74 and IRR=17.2923% 37. 15.913%...
View
Full
Document
This note was uploaded on 02/04/2012 for the course MA 373 taught by Professor Staff during the Spring '08 term at Purdue.
 Spring '08
 Staff
 Math

Click to edit the document details