1. Your goal is to be able to withdraw $11,600 for each of the next eight years beginning one year from today and also to withdraw $44,000 ten years from today. The return on the investment is expected to be 6%. The amount that needs to be invested today is closest to: (Table A.1, Table A.2, Table A.3, and Table A.4) (Use appropriate factor(s) from the tables provided.)

$78,842.

$132,741.

$96,603.

$72,034.

2. Cecilia Company reported net income of $1,400,000. The average total liabilities were $4,310,000 and average total stockholders' equity was $5,220,000. Interest expense was $102,000 and the tax rate was 40%. Cecilia's return on assets ratio is closest to:

14.7%

15.8%

13.6%

15.3%

3. Rachel Corporation purchased a building by paying $92,000 cash on the purchase date, agreeing to pay $50,400 every year for the next eight years and $102,000 ten years from the purchase date. The first payment is due one year after the purchase date. Rachel's incremental borrowing rate is 9%. The liability reported at on the balance sheet as of the purchase date, after the initial $92,000 payment was made, is closest to: (Table A.1, Table A.2, Table A.3, and Table A.4) (Use appropriate factor(s) from the tables provided.)

$414,039.

$505,200.

$278,954.

$322,039.