Global Enterprises has just signed a $3 million (nominal value) contract. The contract calls for a payment of $.5 million today, $.9 million one year from today, and $1.6 million two years from today. Interest rate is 12%. What is the contract's equivalent value if we evaluate it in two years (hint: calculate future value in two years). I know the answer is $3.24 million but I need help getting there. Can you show me how you got that please.

A project contractor needs P500,000 for his operation. One financial institution is willing to lend him the money for one year at 12.5% interest per annum (discounted). Another lender is charging 14%, with the principal and interest payable at the end of one year. A third financier is willing to lend him P500,000 payable in 12 equal monthly installments of P46,000. Which offer is best for him?

2. You have just been offered a contract worth $1.00 million per year for 5 years. However, to take the contract, you will need to purchase some new equipment. Your discount rate for this project is 12.0%. You are still negotiating the purchase price of the equipment. What is the most you can pay for the equipment and still have a positive NPV? **round to two decimal places**

You expect to receive $150,000 per year on a contract that will last 5 years. You are trying to compare this offer to a lump sum payment. If you can earn 5% on your investments, how much is the contract worth to you today?

You are considering a safe investment opportunity that requires a $1,450 investment today, and will pay $950 two years from now and another $710 five years from now. a. What is the IRR of this investment? b. If you are choosing between this investment and putting your money in a safe bank account that pays an EAR of 5% per year for any horizon, can you make the decision by simply comparing this EAR with the IRR of the investment? Explain. a. What is the IRR of this investment? The IRR of this investment is %. (Round to two decimal places.)

You are considering a safe investment opportunity that requires a $780 investment​ today, and will pay $870 two years from now and another $640 five years from now. a. What is the IRR of this​ investment? b. If you are choosing between this investment and putting your money in a safe bank account that pays an EAR of 5% per year for any​ horizon, can you make the decision by simply comparing this EAR with the IRR of the​ investment? Explain.

You are considering a safe investment opportunity that requires a $1,080 investment​ today, and will pay $710 two years from now and another $610 five years from now. a. What is the IRR of this​ investment? b. If you are choosing between this investment and putting your money in a safe bank account that pays an EAR of 5% per year for any​ horizon, can you make the decision by simply comparing this EAR with the IRR of the​ investment? Explain. a. What is the IRR of this​ investment?   The IRR of this investment is _____________%. ​ (Round to two decimal​ places.)

We purchase a machine with a price of $400,000. We pay 20% up front, and will finance the rest over a 2 year period. When the purchase occurs: A. We will have a note payable of $320,000. B. No, we will not have a note payable of $320,000.

You are offered an investment that requires you to put up $5,000 today in exchange for $12,000 10 years from now. What is the annual rate of return on this investment?

You are negotiating to make a 6-year loan of $40,000 to Breck Inc. To repay you, Breck will pay $5,000 at the end of Year 1, $10,000 at the end of Year 2, and $15,000 at the end of Year 3, plus a fixed but currently unspecified cash flow, X, at the end of each year from year 4 through Year 6. Breck is essentially riskless, so you are confident the payments will be made. You regard 8% as an appropriate rate of return on a low risk but illiquid 6-year loan. What cash flow must the investment provide at the end of each of the final 3years, that is, what is X?