1. Would you rather receive $1,000 a year for 10 years or $800 a year for 15 years? Suppose the interest rate is 5% per year.
2. Find the schedule and cost variances for a project that has as actual cost at month 16 of $540,000, a scheduled cost of $523,000, and an earned value of $535,000. What do the results tell you?
3. Suppose you invest $1,000 today and you will then receive $100 at the end of each year forever. What is the IRR for this project? (Calculation is required).