If mike plans to spend these savings in even amounts over


Questions -

If you invest $105 at an interest rate of 10%, how much will you have at the end of five years?

What is the PV of $240 received in year 6 (at a discount rate of 1%)?

What is the PV of $240 received in year 6 (at a discount rate of 13%)?

What is the PV of $240 received in year 11 (at a discount rate of 25%)?

What is the PV of $240 received in each of years 1 through 3 (at a discount rate of 12%)?

If the discount rate is 12.0%, what is the PV of these future salary payments?

Mike saves 8% of his salary each year and invests these savings at an interest rate of 12.0%, how much will he have saved by age 60?

If Mike plans to spend these savings in even amounts over the subsequent 20 years, how much can he spend each year?

A factory costs $550,000. It will produce an inflow after operating costs of $175,000 in year 1, $275,000 in year 2, and $375,000 in year 3. The opportunity cost of capital is 10%. Calculate the NPV.

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