1. You loaned a friend $12,000 to be payed back at the end of 5 years. She will pay you $ 16,500 after 5 years. What interest was the loan in?

2. Calculate the Profitability Index (PI) of a project whose cost is $ 35,000 and will generate an after-tax cash flow of $ 10,000 each year in the next 6 years with a required rate of return of 10%.

3. ABC Service wants to purchase new machinery for $ 15,052, which will provide an after-tax cash flow of $ 6,000 per year for the next 5 years. Calculate the net present value (NPV) of the machinery if you have a rate of return of 12%.