IV. Mr. Eduardo Aged his employer Jurasic Enterprises offers
an opportunity to retire at this time. They offer the following
options to Aged People:
to. $ 60,000 in five years.
b. $ 7,000 a year for the next ten years.
Aged man wants a 7% annual return. Which option should Aged
People accept because it offers the highest present value?
V. A company is considering building a new factory to produce
aluminum bats. The project requires an original investment of $
5,000,000 and will produce an NCF of $ 1,000,000 a year for the
next eight years. Based on the above, compute the NPV that the
company could obtain if it expects:
to.
a. 9 percent performance.
b. 11 percent performance.
c. 13 percent performance.
d. 15 percent performance.