1. The Town Pool is considering investing $3.200 today in a popcorn market. The annual cash profits from the machine will be $ 500 for each of the 10 years of its useful life. What is the IRR on the investment?
2. An investment will pay $175 at the end of each of the next 3 years, $475 at the end of Year 4, $760 at the end of Year 5, and $1,060 at the end of Year 6. If other investments of equal risk earn 15.27% annually, what is its present value?
3. You’re prepared to make monthly payments of $240, beginning at the end of this month, into an account that pays 10 percent interest compounded monthly. How many payments will you have made when your account balance reaches $35,000?