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- 1. Multiple Choice
If you have THB 10,000 today and the interest rate is 3%, in 10 years, you will have:
7,441
13,000
13,439
85,302
- 2. Multiple Choice
At an annual interest rate of 6%, the present value of THB 5,000 received in 5 years is closest to:
3,736
3,846
6,691
6,500
- 3. Multiple Choice
At an annual interest rate of 25%, the present value of GBP 500 received every year forever, but starting in 3 years (i.e. the first cash flow is at t=2) is closest to:
256
1024
1280
2000
- 4. Multiple Choice
You recently won a competition, and the organizer has the following menu of prizes for you to choose from. You can only choose one option. If the discount rate is 12%, which option would you choose?
THB 100,000 today (t=0)
THB 180,000 in 5 years (t=5)
THB 11,400 forever starting from the end of this year (t=1)
THB 18,000 every year for 10 years starting at the end of this year (t=1)
- 5. Multiple Choice
Suppose you have the following cash flow:
Year 0: -1.00
Year 1: +0.25
Year 2: +0.45
Year 3: +0.65
If the discount rate is 10%, then NPV of the cash flow is:
-0.09
0.09
0.35
1.09
- 6. Multiple Choice
Suppose you have the following cash flow:
Year 0: -1.00
Year 1: +0.25
Year 2: +0.45
Year 3: +0.65
If the discount rate is 10%, what can you say about the IRR of the cash flow?
IRR < 10%
IRR = 8.8%
IRR > 10%
IRR = 35%
- 7. Multiple Choice
PTTEP is considering purchasing an oil well that will generate USD 100 million in cash flow next year (t=1). However, with falling oil price, you expect the cash flow to decline by 2% per year. If the discount rate is 8% and the asking price for the oil well is USD 1,000 million, what is the NPV of the oil well?
USD -250 million
USD 0 million
USD 250 million
USD 667 million
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