1. Your 401K's balance is $50,000 right now. You want to retire in 30 years with $1,000,000. You add $6000 annually, but what interest rate do you need to earn in order to reach your goal? (The result could be approximate)

A. 9.37% B. 7.25% C. 15.76% D. 6.52%

2. What is the IRR of a project that costs $74,361.78 and provides cash inflows of $25,000 annually for four years?

A. 9.85% B. 11.02% C. 13% D.14.85%

3. If a project requires an initial investment of $30,000 and returns $7500 annually for four years, then what can be assumed about the NPV?

A. The NPV is positive; B. The NPV is negative for any interest rate; C. The NPV is zero; D. Nothing can be assumed about the NPV.

4. A currently used machine costs $7750 annually to run. What is the maximum that should be paid to replace the machine with one that will last four years and cost $3575 annually to operate? The opportunity cost of capital is 15%.

A. $10,000.00 B. $11,919.53 C. $11,943.45 D.$12,348.54