Homework answers / question archive / 1) What is the maximum that should be invested in a project at time zero if the inflows are estimated at $4,000 annually for 4 years, and the cost of capital is 10 percent? Write your answer with two decimal point

1) What is the maximum that should be invested in a project at time zero if the inflows are estimated at $4,000 annually for 4 years, and the cost of capital is 10 percent? Write your answer with two decimal point

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1) What is the maximum that should be invested in a project at time zero if the inflows are estimated at $4,000 annually for 4 years, and the cost of capital is 10 percent? Write your answer with two decimal point.

2) What is the present value of a risk-free bond with a face value of $2000, a maturity of four years, annual coupon payments, a coupon rate of 5% if the interest rate is 10%?

3)  What is the present value of a perpetuity that pays out $100 annually forever if the interest rate is 10%?