1. You want to receive $ 6,000 per month in retirement. If you can earn .75% per month and you expect to need the income for 25 years, how much do you need to have in your account at retirement ?

$595,808

$ 589,080

$ 714,969

$ 721,696

2. After careful analysis you determine that your company's WACC is 12.3% . The Chief Operating officer Paul Hewson comes to you with an investment proposal to build a new guitar factory in Belfast at a cost of 64 Million dollars. He is exited about the project and the IRR will be 11.6 % and has a payback period of 3.8 years which is an acceptable payback period for your company . Would you recommend moving forward ?

A. Yes because 11.6% is a higher return then you can get with other investments

B. Yes because this will give you an opportunity to visit Ireland.False

C. No because the IRR is below your firms WAAC

D. Yes because the Paylack period is acceptable .