1. I invested on January 1st 2017 35,000€ in a financial product that is giving a compounded interest with payments on a quarterly basis.
On January 1st 2022 I will get back my investment together with the interests, and I know that I will receive 60,212€.
It was a good investment, but I can´t remember the rate.
Could you tell me?
2 A company has the following cash flow:
Period C0= -900
Period C1= +1000
Period C2= -200
Period C3= +600
Should the company invest in the project if cost of capital is 6%?
3.- A Company has been offered the possibility of entering two projects:
a) A fIve years project that consists on an initial investment of 60,000 EUR and a set of 5 yearly revenues of 20,000 EUR from year 1 onwards
b) An eight years project that consists on an initial investment of 160,000 EUR and a set of 8 yearly revenues of 30,000 EUR from year 1 onwards.
From the point of view of the payback period, what is the best option
4.- A Company has been offered a five years contract to provide components to a car manufacturer. If they accept that project, there will be an initial investment of 120,000 EUR, an extra expense of 25,000 EUR in year 4, and yearly revenues of 30,000 EUR. The company wishes to gain a 8% at least (use this as a discount rate). What is the NPV of this operation?
5.- Today it is my 30th birthday. The day I was born, my father invested a certain
amount of money in a bank account that generates an annual interest rate of 3,5% compounded monthly. Today, there are 120,000€ in that account.
How much money did my father invest the day I was born?
The post Financial product first appeared on COMPLIANT PAPERS.
