1. Find the FV of $500, 10 years in the future if the opportunity cost...
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Finance
1. Find the FV of $500, 10 years in the future if the opportunity cost rate is 5.93%
2. Find the PV of $5,000 to be delivered in 15 years if the opportunity cost rate is 4.22%
3. Would you prefer the following:
a. an ordinary annuity where you receive $500 each year for 7 years if the opportunity cost is 5.11%
b. an annuity due where you receive $490 each year for 7 years if the opportunity cost rate is 5%
4. What is the net present value of the following stream of cash flows assuming the opportunity rate is 11% and 10% Solve NPV using each cash flow and the NPV function in Excel.
Year 0: -$12,000
Year 1: $3,000
Year 2: $2,000
Year 3: $5,000
Year 4: -$500
Year 5: $7,000
***USE excel with formulas!
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