What is your real rate of return

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Reference no: EM131994458

1. If you earned a rate of return of 9% on your bond investments last year. During that time the inflation rate was 2.68%. What is your real rate of return?

2.68%

4.68%

5.18%

6.19%

2. What is the future value of $100 invested at 10%, compounded semi-annually for 25 years? ______

$1,000

$1,100

$1,147

$1,157

3. A company is considering an investment project with the following cash flows: Year 0 = -$160,000 (initial costs); Year 1= $50,000; Year 2 =$85,000; and Year 3 = $65,000; The company has a 9.8% cost of capital, calculate the NPV for the project ______

$5,144.2

$5,683.5

$6,482.5

$6,856.3

4. Based on the information from Question 3, calculate the IRR for the project ___

8.25%

9.34%

11.54%

10.14%

Reference no: EM131994458

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