Question 1: You purchased a piece of property at $360,000 five years ago. You can sell the property at $450,000. What is the rate of return on this real estate investment?
Question 2: Best Foods forecasts the following cash flows on a special meat packing operation under consideration.
A0 |
A1 |
A2 |
A3 |
$15,000 |
$0 |
$8,200 |
$9,500 |
What is the rate of return on this investment?
Consider four projects with the following sequences of cash flows:
|
Project .4
|
Net Cash Flow
Pgin3t. Project C
|
Project I)
|
0
|
-$25,000
|
-$23,000
|
$43,233
|
-$56.500
|
1
|
$11000
|
$32,000
|
-$18,000
|
-$2.500
|
2
|
$23,000
|
$31000
|
-$18,000
|
-$6.459
|
3
|
$34_000
|
-$25.000
|
-$18,000
|
$88,345
|
Question 3: Consider the investment project with the following net cash flows
End of year (n) |
Net Cash Flow |
0 |
($12,000) |
1 |
$2,000 |
2 |
$5,500 |
3 |
X |
4 |
X |
What would he the value of X if the project's IRR is 25%?