Discount rate:6%End of year:124Cash flows:(20,000) $5,000 $5,000 $5,000 $5,000 $5,000What is the Net Present Value of the cash flows?At what discount rate is the Net Present Value "0"?Initial outlay:5,000Life of investment in years:10Amount to be received at end:10,0008Rate of return:Amount of loan:2$50,000Annual payment:2$10,000Interest rate:8%9.How many years will it take to pay off the loan?3.%24%24%24%24

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Discount rate: 6% End of year: 1. 3. 4 Cash flows: (20,000) $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 What is the Net Present Value of the cash flows? 7 At what discount rate is the Net Present Value "0"? Initial outlay: 2$ 5,000 Life of investment in years: 10 Amount to be received at end: 2$ 10,000 8. Rate of return: Amount of loan: 50,000 Annual payment: 2$ 10,000 Interest rate: 8% 9. How many years will it take to pay off the loan?

Discount rate: 6% End of year: 1. 3. 4 Cash flows: (20,000) $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 What is the Net Present Value of the cash flows? 7 At what discount rate is the Net Present Value "0"? Initial outlay: 2$ 5,000 Life of investment in years: 10 Amount to be received at end: 2$ 10,000 8. Rate of return: Amount of loan: 50,000 Annual payment: 2$ 10,000 Interest rate: 8% 9. How many years will it take to pay off the loan?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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7 Present work in Excel Consider the following: Financed amount: $385,000 Cost of funds: 7.25% (interest rate) 30-year amortization Calculate (round to nearest dollar): Annual payment amount (this is monthly payment x 12 --- then rounded to nearest dollar) Amount of 'Interest paid' during year 3 (rounded to nearest dollar) Amount of 'Principal paid' during year 3 (rounded to nearest dollar)
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all asnwers with working

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