1. A project that provides annual cash flows of $2,300 for 8 years costs $9,900 today. What is the internal rate of return (IRR)?
2. What do we mean by future value of an investment and why is this important to you and your financial planning for the future?
3. In general, what is the relationship between a stated interest rate and an effective interest rate? Which is more relevant for financial decisions like buying a house or car?