Question

IV. Mr. Eduardo Aged his employer Jurasic Enterprises offers an opportunity to retire at this time....

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.

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