Present worth of your cash flow to show the rates of return

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Reference no: EM132032948

1. Create a cash flow that has a rate of return at 10% and a rate of return at 20%. Plot the present worth of your cash flow to show the rates of return.

2. You are considering a project that promises you cash flows of 513 USD each year for 8 years. Based on the riskiness of the project, you require a 10 percent return. What is the maximum you should be willing to pay?

3. You are considering a project that promises you cash flows of 508 USD each year for 5 years. Based on the riskiness of the project, you require a 12 percent return. The cost to buy into the project is 3,459. What is the project NPV?

Reference no: EM132032948

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