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Business Finance IRR NPV

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1. What is the value of $500 paid each 6 months for 5 years at a nominal (annual) rate of 14% compounded semiannually.

2. If a Corporation's 2007 sales were $10 million. If its 2002 sales were $5 million, what is the computed growth rate in sales.

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Solution Summary

IRR and NPV for semiannually compounded interest is determined.

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Answer:
1) Given that,
Semiannually payment 500
Annual interest ...

Solution provided by:
Jayant Kumar, MBA
Education
  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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