Reference no: EM132919838
Problem 1: Should a project requiring investment of Shs 450,000 and producing annual expected cash flow of Shs 150,000 for 4 years be accepted if the cost of capital was 10% p.a.? Use NPV approach.
Problem 2: Suppose that an investor can expect to receive:
40,000 at the end of year 2
100,000 at the end of year 8
70,000 at the end of year 6
Compute his present (value) if his time preference is 12%.
Problem 3: A payoff schedule for a loan is known as:
a. B) an interest schedule
b. C) principal payoff schedule
c. D) an amortization schedule
d. A) a mortgage schedule
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