1.) An auto-parts company is deciding whether to sponsor a racing team for a cost of $4,342,126. The sponsorship would last for 9 years and is expected to have cash flows by $351,705 per year. If the discount rate is 7.84%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship?

2.) If a company has an interest rate of 13.42%. Compute the NPV for the following Cash Flows:

CashFlows	Amount
Cash Flows at 0	268
Cash Flows at 1	93
Cash Flows at 2	178
Cash Flows at 3	0
Cash Flows at 4	50

3.) For the following project, compute an EAA:

Project A requires you an upfront payment of $411,267 and yearly payments of $54,798 for 13 years. Your cost of capital is 4.27%.

4.)A company is thinking about marketing a new product. Up-front costs to market and develop the product are $11.42 Million. The product is expected to generate profits of $1.38 million per year for 29 years. The company will have to provide product support expected to cost $276,833 per year in perpetuity. Furthermore, the company expects to invest $35,217 per year for 13 years for renovations on the product. This investing would start at the end of year 7. Assume all profits and expenses occur at the end of the year. Calculate the NPV of this project if the interest rate is 6.46%.