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I believe that interest rates will drop and that I can sell it in a year for $10,000. What is my expected IRR for the year?
The Engineering Economist is a quarterly journal that costs $20 for 1 year. What is the IRR for subscribing for 2 years rather than for 1 year at a time?
If I expect the stock to be worth $90 per share in 3 years, what is the IRR for keeping the stock? Should I keep or sell the stock if my interest rate is 15%?
If paid quarterly, there is a $50 fee added to each $900 payment. If Whistling Widgets pays annually, what effective annual interest rate is it earning?
If paid quarterly, the payments are $1000 each. If Fred's company pays the dues annually, what effective annual interest rate is it earning?
My auto insurance can be paid in installments. If the installment plan is chosen, what is the effective annual interest rate being paid on the loan?
The market is moving fast, and the product will be closed out in 2 years. What is the new product's IRR for deciding whether to proceed?
If an 8% coupon bond selling for $933 matures in 8 years and is bought from Acme, what is the rate of return?
If interest is paid annually and the bond matures in 8 years, determine the yield to maturity (IRR).
Using AD-AS model, explain carefully the immediate and long term effects of the event towards the economy.
The costs are evenly distributed within each year, and the interest rate is 10%. What is the present worth of the construction costs?
Assume that the savings are continuous throughout the year and that i = 6%. What is the present worth of the savings?
A new 10,000-square-meter warehouse next door to the Tyre Corporation is for sale for $450,000. Buy the new warehouse and cease renting any warehouse space.
Assume you will read the magazine for at least the next 5 years. For what interest rates do you prefer each payment plan?
Develop a choice table for interest rates from 0% to 25%. If the highway department's interest rate is 6%, which specification is preferred?
Construct a choice table for interest rates from 0% to 100%. The owner will not open The North End unless he can expect a 15% rate of return. What should he do?
His employer will give him a raise of $2500 per year, if he passes the FE exam. Over a career of 40 years, what is the PW of the raise at i = 7%?
The royalties begin at the end of year 4 and continue through year 11. If the interest rate is 8%, what is the PW of the royalties?
Mate Construction has purchased some earthmoving equipment that comes with a 2-year warranty. What is the PW of the repair expenses if the interest rate is 9%?
Creek side Engineering pays $3000 per month to lease its office space. What is the present worth of 1 year's lease payments?
Creek side Engineering will pay $24,000 per year for errors and omissions liability insurance. What is the present worth of the coverage for 10 years?
The first lottery payment in Problem 3.27 will not be received until the end of the third year. What is the present worth if the interest rate is 12%?
Which has more effect: halving the life, or doubling the interest rate? Which has more effect: doubling the life, or halving the interest rate?
The payments are received at the end of the year, and the winner's interest rate is 12%. What is the present worth of the winnings?
What is the present worth of the revenue stream if the life is 6 years? 12 years? Graph the present worth for lives of 1 to 20 years.