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  3. 1. find the pv of $5,000 to be delivered in 15 yea

1. Find the PV of $5,000 to be delivered in 15 years if the opportunity...

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Finance

1. Find the PV of $5,000 to be delivered in 15 years if the opportunity cost rate is 4.22%.

2. Find the FV of $500, 10 years in the future if the opportunity cost rate is 5.93%.

3. Would you prefer the following: An ordinary annuity where you receive $500 each year for 7 years if the opportunity cost is 5.11% OR An annuity due where you receive $490 each year for 7 years if the opportunity cost rate is 5%?

4. What is the net present value of the following stream of cash flows assuming the opportunity cost rate is 11% and 10%? Solve NPV using each cash flow and the NPV function in Excel.

Year 0: -$12,000

Year 1: $3,000

Year 2: $2,000

Year 3: $5,000

Year 4: -$500

Year 5: $7,000

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