Question

Please do it in Excel formula Format

Question 01: One hundred years ago, your great grandfather purchased a 300-acre farm for the princely sum of $2500. Today,, that farm is still owned by your family and is currently valued at $1.8 million. What rate of return has your family on this investment by your great grandfather?

you are the pension fund consultant to the Home Depot and are trying to estimate the present value of its pension obligations which are expected to be the following.

Years		Annual cash flow
1 to 5		$ 200 million
6 to 10		$ 300 million
11 to 20		$ 400 million

Find the present value of these pension obligations.

Note: Solve the Problem in Excel Formula Formate

Answer 1

Rate of return is 6.80%

To calculate the present value of pension obligations discount rate required.