1) Assume you plan to buy a condo 5years from now and you need to save for a down payment.You plan to save $3,000per year,with the first payment being made immediately and deposited in a bank that pays 5%. How much will you have after 5 years?

2) An analysis showing the Weighted Average Cost of Capital of Company A exceeds the Return On Invested Capital of a project of Company A would most likely result in which impact from the project of Company A.

A.A decrease in the value of Company A.

B.Positive Net Present Value of Company A's project.

C.An increase in the value of Company A.

D.No change in the value of Company A.

3) nvestments B and C both have the same standard of deviation of 20%and have the same correlation to the market portfolio. If the expected rate of returnon Investment B is 15% and the expected rate of return on Investment C is 18%, the investors would prefer:

A.Investment B to Investment C

B.Investment C to InvestmentB

C.Cannot answer due to insufficient information.

D.Reject both InvestmentB and Investment C

4) Hart Corp.is considering a project that has an initial investment of $1,000 and positive cash flows of $425 for 3 years (1 through 3). What is the project's Internal Rate of Return ("IRR")?

13.65%

13.21%

13.55%

13.12%