If I have £100 today and I invest it at a rate of return of 10%, in 4 years time I will have:

If I received £100 4 years time and I can get a return of 10% on my money that is the same as having the following amount today:

The following data will be use for questions 3, 6 and 8.

Nistleroy Vans Ltd is considering investing in a new van costing £20,000. It is expected that it will have a life of 4 years and be worth £2,000 at the end of this time. Excluding the scrap value, it is expected that the net cash flows from the investment will be:

Year	£000s
1	6
2	8
3	9
4	7

Assume that the cash flows take place at the end of each year.
Assume that the projects in the following questions are NOT mutually exclusive.
Assuming an appropriate rate of return of 10%, the net present value of the investment in the van is:

If the cash flows from a project adopted by a company have a present value of £100,000 and the required investment is £40,000 the effect of the project is:

The decision rule for NPV is

The internal rate of return the Nistleroy Vans project is

The decision rule for IRR is:

The discounted payback period for the Nistleroy Van project is:

The decision rule for discounted payback is:

If a project has a discounted payback period within the acceptable time and conventional cash flows