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Discounted Cash Flows and WACC Homework Problems
Please post the answers (and show your work) in the assignments section
by midnight the last day of the week assigned.
Calculate the future value of 1,535 invested today for 8 years at 6 percent.
(5 points)
What is the total present value of the following cash stream, discounted at
8 percent? (5 points)
Year
1
2
3
4
5
Amount
400
750
945
145
78
3. If you invested $2,000 per year into an IRA for 30 years and received 6
percent return each year, what would the account balance be in 30 years?
(5 points)
4. A friend gives you a proposition. If you give him 1,500 dollars today, he
will guarantee your receive 12 percent a year for the next 5 years. How
much money will you receive from him at the end of 5 years? (5 points)