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1) Assume $100 invested for 3 years with a rate of 4%. What is the value of this investment after 3 years? A) 112.48. B)

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1) Assume $100 invested for 3 years with a rate of 4%. What is the value of this investment after 3 years? A) 112.48. B) 119.1 225 D) 115.76 E) None 2) Assume 5 years later you will have $192 as a result of your investment. With a 5% interest rate, what is the present value of this investment? A29.28 B) 145.73 C) 150.43 D) 115.96 E) None 3) A new investment is projected to create following cash flows. If discount rate is 6% and initial cost is 800, what is net present value? Year 3 Year 1 Year 2 250 300 350 A) 33.48 B) 47.87 C18.62 D) 3.29 E) None 4) What is payback period of the following cash flows if the initial cost is 500? Year 1 Year 2 Year 3 150 250 275 100 E) None D1236 C) 2.42 A) 2.58 25 B) 2.75

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