Assignment - TVM- T/Th class
• Submit using Assignment tab in eLearning by uploading your completed excel file.
• Open a new (fresh) excel workbook to perform you calculations.
• You are allowed only one submission, so please make sure it is the correct one.
• Work independently and do not use class exercise template (or any other template)
1) You are considering an investment that will pay you $12,000 the first year, $13,000 the second year, $17,000 the third year, $19,000 the fourth year, $23,000 the fifth year, and $28,000 the sixth year (all payments are at the end of each year).
a. What is the maximum you would pay for this investment if your opportunity cost is 12%?
b. If you are offered that same investment for $70,000 today, what rate of return would you be earning?