1. An investment today of $21,000 promises to return $10,000 annually for the next 3 years. What is the real rate of return on this investment if inflation averages 6% annually during the period?
2. What are four forms of credit enhancement?
3. What is the equivalent annual cost for a project that requires a $30,000 investment at time zero, and a $10,000 annual expense during each of the next 4 years, if the opportunity cost of capital is 10%?