1. What are some of the limitations of the NPV? How can these limitations be overcome?
2. You borrow $100,000 for 10 years. The loan has an APR of 7% with monthly payments. You will make a $20,000 balloon payment at the end of the 10-year term. What is the monthly payment?
3. If investors expect the rate of inflation to increase sharply in the future, then we should not be surprised to see an upward-sloping yield curve.