1. How much would you pay today for a 25-year annuity due that promises to pay $100 per year if the discount rate is 4.5%?
2. If you can earn an 8.5% rate of return and you invest $25,000 today, how much will you have in 3 years?
3. A project costs $25,000 and generates cash inflows of $1,000, $1,500, $1,750, and $30,000 in years 1, 2, 3, and 4 respectively. What is the project’s IRR?