1) The future value of an ordinary annuity of 1500 each year for 10 years, deposited at 12%, is_______.

A. 11,300

B. 12,656

C. 35,097

D. 26,324

2) A corporation acquires new funds only when its securities are sold:

A. in the secondary market by a commercial bank

B. in the secondary market by a Stock Exchange broker

C. in the secondary market by an investment bank

D. in the primary market by an investment bank

3) What is the NPV for a project whose cost of capital is 15% and initial cost is 5 million and is expected to provide operating cash inflows of 1.8 million in year 1, 1.9 million in year 2, and 1.7 million in year 3?

A. 371,764

B. -880,380

C. 1.7 million

D. - 4,862,947

4) Which of the following provides savers with a secure place to invest funds and offer both individual and companies loans to finance investments?

A. securities exchanges

B. commercial banks

C. mutual funds

D. investment banks