Question 1. An investment costs $10,000 and offers and annual cash flow of $1,770 for ten years. According to the net present value method of capital budgeting, should the firm make this investment if its cost of capital is 10%
Question 2. If and asset is bought for $10,000 and sold for $20,000 after ten years. What was the annual rate of return on this investment
Question 3. Determine the annual financing cost of foregoing a cash discount under credit terms of 2/30 net 90.