1. What is the future value of $1,100, placed in a savings account for four years if the account pays 10.00%, compounded quarterly? (Your answer should be correct to two decimal places).

2. Christopher Electronics bought new machinery for $5,012,000 million. This is expected to result in additional cash flows of $1,200,000 million over the next 7 years. What is the payback period for this project? Their acceptance period is five years.

3. You have invested 30 percent of your portfolio in Jacob Inc., 40 percent in Bella Co., and 30 percent in Edward Resources. What is the expected return of your portfolio if Jacob, Bella, and Edward have expected returns of 0.09, 0.20, and 0.19, respectfully

4. If you were to borrow $9,100 over five years at 0.13 compounded monthly, what would be your monthly payment?

5.

A project has the following cash flows:

Year	Cash Flow
0		-$500
1		$100.00
2		$200
3		$310.00
What is the project's NPV if the interest rate is $6%?

6. Use the following information to calculate your company's expected return.

State	Probability	Return
Boom	20%	0.18%
Normal	60%	0.12%
Recession	20%	-0.16