1. A company expects to receive the following future cash flows from investment in a capital budgeting project. What is the current value of these cash flows if discounted at a 5.50% annual rate? Round to the nearest whole dollar.

Year 1 240,000,000

Year 2 260,000,000

Year 3 280,000,000

Year 4 300,000,000

Year 5 400,000,000

2. You invest $135,000 each quarter into a retirement account and earn 8.95% per year. At retirement your account balance is $5,430,000. Over how many years did you make these investments?

Group of answer choices

29

7.25

4.45

17.80

3. Equipment is purchased for $1,000,000 (no salvage value) in cash. The company uses straight line depreciation for 7 years. Assume no other fixed assets. What is the Accumulated Depreciation balance at the end of year 3? Round to the nearest whole dollar.