Determine npv

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1. an expected benefit worth $168,000 in one year, the risk- free rate of interest is 4.5%,the value of the benefit.
2. an interest rate of 6%, and indifferent between receiving $250 in one year or today will be what.
3. a new blast furnace delivered in one year. the price $1,000,000 for furnace is due in one year.a discount of $50,000 is payed now and an interest rate of 7% what will the NPV paying now.
4.an investor offered to buy a house for $350,000 whenever the owner is ready for retirement.what alternative should the owner do.sell and retire,hire someone and the owner to spend $50,000 now,but will generate $100,000 in profit next year,scale back the restaurant hours and ease into retirement over the next year this will require the owner to spend $40,000 on expenses now, but will generate $75,000 in profit at the end of the year.
5. an annual interest rate of 7%, the future value of $5,000 in five years will be
6. an annual interest rate of 7%, the present value of $5,000 received in five years.
7.consider the alternatives of $132 received in 2years,$160 received in 5years,$200 received in 8years and $220 received in 10years. rank the alternatives from most valuable to least valuable if the interest rate is 7%.
8. joe was offered an immediate payment of $100,000, joe will also received payments of $50,000 in one year,$50,000 in two years, and $75,000 in three years.the current market rate of interest for joe is 6%.in present value how much will joe receive .

Reference no: EM1349804

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