You want to invest in a project in Wonderand. The project has an initial cost of W738,000 and is expected to produce cash inflows of W321,000 a year for 4 years. The project will be worthless after that. The expected inflation rate in Wonderland is 2.5% while it is 4.5% in the U. S. The applicable interest rate for a project like this in Wonderland is 13%. The current spot exchange rate is W1 = $2.3456. Required:
What is the Net Present Value of this project in Wonderland's currency (i. e., in "W")?

Wonderland

Net Present Value of this project in Wonderland's currency is:

= W169,256.05.

Explanation:

a) Data and Calculations;

Initial project cost = W738,000

Expected annual cash inflows = W321,000

Project duration = 4 years

Expected inflation rate in Wonderland = 2.5%

Applicable interest rate for the project = 13%

Real interest rate = 15.5% (13% + 2.5%)

Present value of annual cash inflows =  W907,256.05

Present value of initial cost outflows =   W738,000.00

Net Present Value of this project =         W169,256.05

Calculating the PV of the Cash Inflows from an online financial calculator:

N (# of periods)  4

I/Y (Interest per year)  15.5

PMT (Periodic Payment) = W321000

FV (Future Value)  0

Results

PV = W907,256.05

Sum of all periodic payments = W1,284,000.00

Total Interest = W376,743.95

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!

answerpounds of plastic to purchase 200+60-20=(240);