1.

Bates Company issued $1,200,000, 13-year bonds. It agreed to make annual deposits of $73,500 to a fund (called a sinking fund), which will be used to pay off the principal amount of the bond at the end of 13 years. The deposits are made at the end of each year into an account paying 4% annual interest. What amount will be in the sinking fund at the end of 13 years? (Round answer to 2 decimal places, e.g. 25.25.)

2.

Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $102,762. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $82,800, and annual cash outflows would increase by $48,200. The companys required rate of return is 12%. Click here to view PV table. Calculate the internal rate of return on this project. (Round answers to 0 decimal places, e.g. 15%.) Internal rate of return on this project is between _____ % and ______ %