1. If you earned a rate of return of 9% on your bond investments last year. During that time the inflation rate was 2.68%. What is your real rate of return?
2.68%
4.68%
5.18%
6.19%
2. What is the future value of $100 invested at 10%, compounded semi-annually for 25 years? ______
$1,000
$1,100
$1,147
$1,157
3. A company is considering an investment project with the following cash flows: Year 0 = -$160,000 (initial costs); Year 1= $50,000; Year 2 =$85,000; and Year 3 = $65,000; The company has a 9.8% cost of capital, calculate the NPV for the project ______
$5,144.2
$5,683.5
$6,482.5
$6,856.3
4. Based on the information from Question 3, calculate the IRR for the project ___
8.25%
9.34%
11.54%
10.14%