Salvatore has the opportunity to invest in a scheme which will pay $7,500 at the end of each of the next 5 years. He must invest $15,000 at the start of the first year and an additional $15,000 at the end of the first year. What is the present value of this investment if the interest rate is 8%?

A plastic manufacturing company that makes four major products seeks to expand its operations in the coming year. At the beginning of the financial year, the company must decide on which of four new machines A, B, or C to purchase to be able to meet total annual demand. Each machine operates 14 hours a day, 360 days a year. Machine A costs GH¢43,000, machine B costs GH¢37,500 and machine C costs GH¢75,000. The following product forecasts and processing times have been projected:                      Demand,                     units/year               Processing times per Unit (Minutes) Product                              Machine A         Machine B             Machine CPenholders        16,000             5                         3                         6Bowls                14,000             4                          3                         5Cups                   6,000             6                         5                         7Carrier Bags      24,000            3…

Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $40,000 at the end of each of the next 3 years. The opportunity requires an initial investment of $ 10,000 plus an additional investment at the end of the second year of $50,000. What is the NPV of this opportunity if the interest rate is2% per year? Should Marian take it?

Tom will pay 10000 dollars to Monica 2 years from now. John wants to buy this debt from Monica. How much would John pay to Monica in order to buy this debt if the yearly interest rate in the market is 10% for the first year and 12% for the following year?