Compute the net present value of investment

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1. An investment requires an outlay of $80,000 today. Cash inflows from the investment are expected to be $30,000 per year at the end of years 6, 7, 8, 9, and 10. If you require a 24 percent rate of return on this type of investment, compute the net present value of investment.

2. A commercial bank will loan you $302,462 to for 30 years to buy a house. The loan (or house mortgage) requires monthly installments at the end of each month. The annual interest rate on the loan is 12.08% compounded monthly. What is the amount of the monthly payment? Please round your answer to the second decimal without dollar sign. E.g. 1.11.

Reference no: EM131983909

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