At what annual rate would the following have to be? invested?
a. ?$500 to grow to ?$1,569.21 in 12 years
b. ?$310 to grow to 617.69 in 8 years
c. ?$49 to grow to $592.92 in 22 years
d. ?$200 to grow to 267.65 in 5 years
(Round to the nearest whole? percent.)
2. Lepton Industries has a project with the following projected cash flows: Initial Cost,
Year 0: $468,000
Cash flow year one: $135,000
Cash flow year two: $240,000
Cash flow year three: $185,000
Cash flow year four: $135,000
Plot the NPV profile of this project in Excel. Start with discount rate equal to zero and increase the discount rate by 2% increments until discount rate equal to 30%. For what discount rates would Lepton accept this project? For what discount rates would Lepton reject this project? What’s your estimate about the IRR of this project?