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05, Spring 2019 Remaining Time: 09:0 09:06:53 You own a building that is worth 59,600 dollars and is expected to produce quarterly cash flows of

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05, Spring 2019 Remaining Time: 09:0 09:06:53 You own a building that is worth 59,600 dollars and is expected to produce quarterly cash flows of 2.250 dollars forever. The first quarterly cash flow is expected in 3 months from today. What is the expected quarterly cost of capital for the building? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098. Number An investment, which is worth 24,500 dollars and has an expected return of 10.93 percent, is expected to pay fixed annual cash flows forever with the next annual cash flow expected in 1 year. What is the present value of the annual cash flow that is expected in 5 years from today? Number Quantum Pizza took out a loan from the bank today for 22,400 dollars. The loan requires Quantum Pizza to make a special payment of 11,600 dollars to the bank in 7 years and also make regular, fixed payments of to the bank each year forever. The interest rate on the loan is 10.43 percent per year and the first regular fixed annual payment of X will be made to the bank in 1 year. What is X, the amount of the regular, fixecd annual payment? 6 Number

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