All other things being the same, would you prefer a bank account that compounds interest quarterly or one that compounds interest semiannually?
Which of the following two options will give you the greatest future value: (A) an initial deposit of $100 earning 20% per year, compounded annually and left to grow for 10 years, or (B) an initial deposit of $75 earning 12% per year, compounded monthly and left to grow for 15 years?
A company is considering a project, that is expected to last for 4 years and requires an immediate investment of RWF60,000 on the plant. Inflows are estimated at RWF12,000 for each of the first two years and RWF10,000 for each of the last two years. The company‟s cost of capital is 10% and the plant would have zero scrap value at the end of the 4 years. Calculate the NPV and recommend if the project should be accepted