15. David is planning to enter university when he graduates from high school 7 years from now. He anticipates that he will need $10,000 at the beginning of each of the four university years to pay for tuition fees, and have some pocket money. David has made an arrangement with her parent to do the household chores if they agree to deposits $3,500 at the end of each year for the next 7 years in a bank account paying 8% interest. Will there be enough money in the account for David to pay for her college expenses?

Select one:

a. $4,846

b. $1,524

c. $5,207

d. $4,541

14. Beranek Corp has $665,000 of assets, and it uses no debt--it is financed only with common equity. The new CFO wants to employ enough debt to raise the debt/assets ratio to 40%, using the proceeds from borrowing to buy back common stock at its book value. How much must the firm borrow to achieve the target debt ratio?

Select one:

a. $324,520

b. $266,000

c. $303,240

d. $252,700

e. $250,040

16. You have the opportunity to purchase mineral rights to a property in North Dakota with expected annual cash flows of $10,000 per year for eight years. If you discount these cash flows at a rate of 12% per year, what are these cash flows worth today if the cash flows occur at the end of each period?

Select one:

a. $80,000.00

b. $49,676.40

c. $122,996.93

d. $55,637.57

17. The current price on iphone 11 pro max is $3,900. The iphone Xr prices have dropped at an average rate of 9% per year in recent years. If you expect this trend to continue, how much will this style of television cost in three years?

Select one:

a. $2,939

b. $5,050

c. $4,633

d. $2,999