# Finance Assignment | Top Essay Writing

2. Farmer Brown sold the mineral rights on his farm to Exxon Corporation in exchange for payments of \$14,000 per year in perpetuity. Using a discount rate of 6.5 percent, compute the present value of this arrangement

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#3. Investment X has the following projected cash flows over the next four years:

 Year Amount 1 \$5700 2 \$4900 3 \$4300 4 \$2000

If the opportunity cost for an investment of this level of risk is 9.1%, what is the most that you should be willing to pay for it?

#4. An investment promises cash inflows in years 1, 2, 3 and 4 of \$5,218, \$5,303, \$15,870, and \$17,604 respectively. If your required rate of return is 6.7%, what is the present value of the cash inflows for this project? (to the nearest dollar)

#5. An investment promises cash flows in years 1, 2, and 3 of \$39,000. In years 4 and 5, it will pay \$61,000. If your required rate of return is 9.4 percent, what is that worth today?

#6. Using a discount rate of 5.7 percent, compute the present value of the following cash flows to the nearest dollar:

 Year Cash Flow 1 \$8,613 2 \$9,169 3 \$15,300 4 \$19,344 5 \$9,378

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