6. Calculate the net present value with a required return of
10%, an initial investment of $30,000, and 10 years of payments of
$6,000 each.
7. Calculate the net present value with a required return of of
8%, an initial investment of $45,000, and cash flows of $12,000,
$20,000, $10,000, and $6,000 for years 1 through 4
respectively.
8. Given the following information, a required return of 8%, an
initial investment of $45,000, and cash flows of $12,000, $20,000,
$10,000, and $6,000 for years 1 through 4, should the investment be
done?
9. Calculate the net present value with a required return of 5%,
an initial investment of $45,000, and cash flows of $9,000, $8,000,
$15,000, and $20,000 for years 1 through 4 respectively.
10. Given the following information, with a required return of
5%, an intial investment of $45,000, and cash flows of $9,000,
$8,000, $15,000, and $20,000 for years 1 through 4
respectively.
11. Calculate break-even given the following information: sales
per unit of $25, variable costs of $13, fixed costs of $15,000.
Remember, you cannot have partial units, so you will need to round
up if the answer is a decimal.
12. Calculate break-even given the following information: sales
per unit of $40, variable costs of $15, fixed costs of $15,000, and
a desired profit of $20,000. Remember, you cannot have partial
units, so you will need to round up if the answer is a decimal.