1.00076 1,800% Question 12 9 p You are considering an investment which has the following after-tax cash flows. If you require a 5- year payback period, should you take the investment? Year 0 1 2 3 4 5 6 Cash Flow -$30,000 $10,000 $5,000 $5,000 $7,500 $10,000 $20,000 Yes, the payback is 3.75 years. No, the payback is 5.75 years. Yes, the payback is 4.25 years. No, the payback is 5.25 years. Yes, the payback is 3.00 years. Question 13 9 p An insurance company promises to pay Jane $1 million on her 65th birthday in return for a one-time payment of $125,000 today. (Jane just turned 30.) At what rate of interest would Jane be indifferent as to whether to accept the company's offer or invest the premium on her own? 0 3.4% 05.1% 1.00076 1,800% Question 12 9 p You are considering an investment which has the following after-tax cash flows. If you require a 5- year payback period, should you take the investment? Year 0 1 2 3 4 5 6 Cash Flow -$30,000 $10,000 $5,000 $5,000 $7,500 $10,000 $20,000 Yes, the payback is 3.75 years. No, the payback is 5.75 years. Yes, the payback is 4.25 years. No, the payback is 5.25 years. Yes, the payback is 3.00 years. Question 13 9 p An insurance company promises to pay Jane $1 million on her 65th birthday in return for a one-time payment of $125,000 today. (Jane just turned 30.) At what rate of interest would Jane be indifferent as to whether to accept the company's offer or invest the premium on her own? 0 3.4% 05.1%