Assessment of CLO 2

Assessment of CLO 2: Perform various financial calculations.

 

1) The Hudson Corporation makes an investment of $24,000 that provides the following cash flow:

 

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Year                                        Cash

 

1 …………………….            $13,000

 

2 …………………….            13,000

 

3……………………..            4,000

 

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  1. What is the net present value at an 8 percent discount rate?
  2. What is the internal rate of return?
  3. Is this problem, would you make the same decision under both parts A and B?

 

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2) Mrs. Crawford will receive $7,600 a year for the next 19 years from her trust. If a 14 percent interest rate is applied, what is the current value of the future payments?

 

Please respond to both questions in a Word or Excel document

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