What is the present value

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Reference no: EM132248016

1. If you will receive $23,000 a year for the next 8 years starting the beginning of this year, what is the Present Value? Assuming interest rate is 4% [Show the formula and the result after applying this formula on the excel spreadsheet]

2. If you are buying $5,000 worth of government bond that guarantees 4% a year, what will you get in return 20 years from now? Show the formula and the result after applying this formula on the excel spreadsheet.

3. Given the cash flow of the company is $3,000,000, show the formula using nested IF to formulate the following condition: a. if the cash flow is at least 1 million dollars, you will buy this company, if not, then if the cash flow is at least $285,000, then you will consider buying this company, if these two conditions all failed, then you will decide not to buy this company. (Use the excel spreadsheet to test your result first before copying them to the space below of the formula)

Reference no: EM132248016

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