What is the present worth of the ten years of net revenue

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Reference no: EM131978683

1. The net revenue stream from a new projeet begins at si a t ed fthe interest rate is 11%, expected to increase at 8% per year over the 10-year life of the product. gins at s15 M at the end of year 1. Revenues are If the interest rate is 1 1%, what is the present worth of the ten years of net revenue?

2. A government-sponsored student loan requires that only half the loan be repaid so long as the student returns "home" for five years to practice as a professional. The maximum loan amount available is $40,000 to be "repaid" in five payments of $4,000 at the end of years 1 to 5. What is the interest rate on this loan?

Reference no: EM131978683

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