Engineering homework help
Solve the following questions using TVM formulas in Excel. Show your work to receive full credit.6. You own a building that a local business wants to rent for the next 10 years. The business owner has offered to pay $40,000 today or pay $6,400 at the end of each of next 10 years. If your required rate of return is 10%, which payment schedule should you accept?7. How much would you pay to participate in a real estate project that pays nothing for the first 10 years and $2,500 for the following 10 years if you can earn 13% return on other investments of similar risk?8. Calculate the [RR and NPV for the following cash ?ows. Assume a 15% discount rate Project 1 Project 2Cash ?ow Cash ?ow$20,000 -$20,0001,000 12,0003,000 15,0004,000 3,00012,000 4,00015,000 1,000 9. Ifyour tenant pays you rent of $24,000 a year for 10 years, what is the present value of the series ofpaynnents discounted at 10% annually? 10. You are going to invest $300,000 in a real estate investment project that generates the following cash Assuming an 11% discount rate, what is the NPV of this project? What is the [RR?