return and possibilities for pessimistic , most likely , and optimistic results .
2 ) Capital asset princing model ( CAPM ) Use the capital asset princing model to find the required reurn .
3 ) a . What single investment made today , annual interest , will be worth $ 3,500 at the end of 10 years ?
b . What is the present value is $ 3,500 to be received at the end of 10 years if the discount rate is 6 %?
c . What is the most you would pay today for a promise to repay you $ 3,500 at the end of 10 years if your opportunity cost is 6 % ?
d . Compare , contrast , and discuss your findings in part a through c .
4 ) Loan Payment Determine the equal , annual , end-of-year payment required each year over the life of the loan to repay it fully during the stated term of the loan .
5 ) Loan amortization schedule Personal Finace Problem Joan Messineo borrowed $ 18,000 at a 14 % annual rate of interest to be repaid over 3 years . The loan is amortized into three equal , annual , end-of-year payments .
6 ) NPV Calculate the net present value ( NPV ) for a 30-year project with an initial investment of $ 0 and a cash inflow of $ 2,000 per year . Assume that the firm has an opportunity cost of 17 %. Comment on the acceptability of the project .
7 ) Scenario Analysis Automated Food Distribution Corp . ( AFDC ) produces vending machines and places them in public buildings . The