"an investment firm is selling a new product that will pay $100at the end of each of the next 20 years. if the new investment costs $1,246 to purchase, what is its internal rate of return (a. 9%.b. 11%.c. 3%.d. 5%.e. 7%.

The  internal rate of return of this investment is d) 5%

Explanation:

Hi, in order to find the discount rate or the internal rate of return of this investment, you have 2 choices. First is to solve for "IRR" the following equation.

Where:

A= annuity (equal amount of money as a return, every year)

IRR= internal rate of return

therefore

But this is too difficult to solve, so we have to use the second option, which is use the IRR function of MS Excel. Please see the attached document to check all calculations and the answer.

Best of luck.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!