1.) A person borrows $10,000 and is going to repay with 10 payments of $1,359....
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Accounting
1.) A person borrows $10,000 and is going to repay with 10 payments of $1,359. What interest rate os the person being charged? Write the answer as .0X or .XX rather than X% or XX%
2.) A $300.000 investment generates cost savings of $50,000 for the next 10 years. What is the payback period? (don't write years, just the number)
3.) Sarah invests $1,000 today, what will it be worth in 40 years if she can earn 12% interest per year?
4.) An investment project requires an initial investment of $80,000. The project is expected to generate net cash inflows of $28,000 per year for five years. These cash inflows occur evenly throughout the year. What is the project's payback period]? (Ignore Income Tax)
4a.) An investment project requires an initial investment of $80,000. The project is expected to generate net cash inflows of $28,000 per year for five years. These cash inflows at the end of the year and the company has a 12% discount rate, the projects net present value is: (Ignore Income Tax)
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