Question - Katelyn plans to invest $2,000 at the end of each year for the next seven years. Assuming at 14% interest rate, what will her investment be worth 7 years from now?
Assuming a 6% interest rate, how much would Danielle have to invest now to be able to withdraw $10,000 at the end of each year for the next 9 years?
Jim is considering at capital investment that costs $485,000 wand will provide the following net cash inflows:
Year Net Cash Inflow
1 $300,000
2 $200,000
3 $100,000
Using a hurdle rate of 12%, find the NPV of the investment.
What is the IRR of the capital investment described in above for Jim?