FIN 419 ASSIST Perfect Education/fin419assist.cofi FIN 419 ASSIST Perfect Education/fin419assist.cofi | Page 5

table of elements of rates of 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 investmentmade 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.