1. Present value. A smooth-talking used-car salesman who smiles considerably is offering you a great deal on a "pre-owned" car. He says, "For only 6 annual payments of 2,300, this beautiful 1998 Honda Civic can be yours." If you can borrow money at 8%, what is the price of this car? Assume the payment is made at the end of each year. If you can borrow money at 8%, what is the price of this car?

$ _______(Round to the nearest cent.)

2.

Upstate University currently has a 6,500-car parking capacity for faculty, staff, and students. This year, the university issued 4,497 parking passes. The number of parking passes issued has been growing at a rate of 8% per year. How long will it be before the university will need to add parking spaces?

How long will it be before the university will need to add parking spaces?

__years(Round to two decimal places.)

3.

Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $313,500,000, cost of goods sold of $146,700,000, sales and administrative costs of $39,800,000, depreciation expense of $ $60,200,000, and a tax rate of 40%.

The operating cash flow is $

_______ (Round to the nearest dollar.)

4.

Different cash flow.Given the following cash inflow, what is the present value of this cash flow at 5%, 10%, and 25% discount rates?

Year 1: $3000

Year 2: $5000

Years 3 through 7: $0

Year 8: $25000

What is the present value of this cash flow at 5% discount rate?

$__ (Round to the nearest cent.)

What is the present value of this cash flow at 10% discount rate?

$___(Round to the nearest cent.)

What is the present value of this cash flow at 25% discount rate?

$____ (Round to the nearest cent.)