1) Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $20,820. After estimating costs and revenues, Barney projects a net cash inflow from the retreading machine of $4,500 annually for 7 years. Barney hopes to earn a return of 10% on such investments.

(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

What is the present value of the retreading operation? (Round answer to 2 decimal places, e.g. 25.25.)

Present value $

2) Kevin Morales invests $14,895.65 now for a series of $2,400 annual returns beginning one year from now. Kevin will earn a return of 11% on the initial investment.

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(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

How many annual payments of $2,400 will Kevin receive? (Hint: Use Present value of an annuity factor table.) (Round answer to 0 decimal places, e.g. 25.)

Number of annual payments

3) Joanne Quick made an investment of $23,137.65. From this investment, she will receive $3,400 annually for the next 11 years starting one year from now.

(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

What rate of interest will Joanne's investment be earning for her? (Hint: Use Present value of an annuity factor table.) (Round answer to 0 decimal places, e.g. 25%.)

Rate of interest %

4) Kaehler Enterprises earns 5% on an investment that pays back $80,000 at the end of each of the next 4 years.

(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

What is the amount Kaehler Enterprises invested to earn the 5% rate of return? (Round answer to 2 decimal places, e.g. 25.25.)

Kaehler Enterprises invested $

5) Robben Company is considering investing in an annuity contract that will return $28,000 annually at the end of each year for 18 years.

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(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

What amount should Robben Company pay for this investment if it earns an 8% return? (Round answer to 2 decimal places, e.g. 25.25.)

Robben Company should pay $