What is the present value of the stream of payments

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Question 1: Joe M. purchases a house for $365,000. He sells the home 5 years later for $440,000. What is his internal rate of return (IRR)?

8.31%

3.81%

3.18%

1.31%

Question 2: You have a company that needs a new computer system that will cost $25,000. You put down $5,000 and finance the remainder at 12 percent, compounded monthly for 2 years. The bank will automatically deduct the payment from your account at the beginning of each month. What is your monthly equipment payment?

$941.47

$1,176.83

$2,230

$2,677

Question 3: Lotta Dough just won the state lottery and has elected to receive $50,000 per year for 20 years in the form of an annuity due. What is the present value of this stream of payments if money can earn 8 percent annual interest?

$579,139

$530,180

$500,000

$479,035

Reference no: EM132493121

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