Aline has three contracts from which to choose. The first contract will require an outlay of $100,000 but will return $135,000 one year from now. The second contract requires an outlay of $220,000 and will return $315,000 one year from now. The third contract requires an outlay of $290,000 and will return $399,000 one year from now. Only one contract can be accepted. If her MARR is 25 percent, which one should she choose? percent. For the increment from the first contract to the second contract, the IRR is percent. For the increment from the second contract to the third contract, the IRR is percent. Therefore, For the increment from the do-nothing alternative to the first contract, the IRR is should be chosen. (Type integers or decimals rounded to one decimal place as needed.)

Hector has just received an insurance settlement from her accident claim and the insurance company has offered her several alternatives for receiving her settlement. If the rate of interest is an effective annual rate of 10%, Freddy would receive the greatest benefit by selecting which of the following alternatives (circle the letter corresponding to the best option): a)  10 annual cash payments of $50,000 starting two years from today. b)  10 annual cash payments of $37,500 with the first payment to be paid immediately. c)  $100,000 immediately and 5 annual payments of $40,000 starting one year from today. d)  a one-time cash payment of $250,000 immediately. e)  a one-time cash payment of $400,000 to be paid in 5 years. f)  a one-time cash payment of $650,000 to be paid in 10 years.   Please show procedure and formulas uses. Thanks

Charlie has $8,000 to invest for a period of 5 years. The following three alternatives are available to him: • Account 1 pays 4.00% for year 1, 5.00% for year 2, 8.00% for year 3, 9.00% for year 4, and 10.00% for year 5, all with annual compounding. • Account 2 pays 10.00% for year 1, 9.00% for year 2, 8.00% for year 3, 5.00% for year 4, and 4.00% for year 5, all with annual compounding. • Account 3 pays interest at the rate of 7.17490% per year for all 5 years. Based on the available balance at the end of year 5, which alternative is Charlie's best choice? No alternative is better than the others Year 5 Balance, Alternative 1: $ 126 Year 5 Balance, Alternative 2: $ 126 Year 5 Balance, Alternative 3: $ 126 Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±5.

Moon purchases a lot for $300,000. Moon agrees to pay $25,000 dollars at the end of each year. If the interest rate is 4% compounded annually, how many full payments must be made, and what will be the size of the concluding payment one year after the last full payment? How to enter into TVM Solver??

Two friends, Alysha and Betty, are planning for their retirement. Both are 20 years old and plan on retiring in 40 years with $1,000,000 each. Betty plans on making annual deposits beginning in one year (total of 40 deposits) while Alysha plans on waiting and then depositing twice as much as Betty deposits. If both can earn 4.20 percent per year, how long can Alysha wait before she has to start making her deposits? (Round answer to 2 decimal places, e.g. 125. Do not round your intermediate calculations.) Alysha can wait for years

Julie has just retired. Her company’s retirement program has two options as to how retirement benefits canbe received. Under the first option, Julie would receive a lump sum of $150,000 immediately as her fullretirement benefit. Under the second option, she would receive $14,000 each year for 20 years plus a lumpsum payment of $60,000 at the end of the 20-year period.Required:If she can invest money at 12%, which option would you recommend that she accept? Use present valueanalysis.

Fiona has a four-year contract to sell coffee in a local office building. After two years in business, she wants to move on. Kurt wants to buy out the last two years of Fiona’s contract. He estimates he can make $7,500 in the first year and $7,800 in the second year. If the discount rate is 8%, what is the maximum amount Kurt should be willing to pay?

An engineer intends to travel abroad to take a postgraduate course at a maternity hospital. He estimates that he needs $5,000 to establish himself and another $3,000 monthly for two years to complete the course. What value would he need to have today to make his plans viable, considering that he could apply the money at a rate of 6.0% per year?