1a.

Henry has $440,000 to invest in a 5 year annuity. Assuming the time value of money is 7%, what amount will Henry receive in cash each year? (Do not round your PV factors. Round your answer to the nearest dollar.)

$88,000

$94,160

$107,312

None of these answers is correct.

1b.

An investment that costs $33,500 will produce annual cash flows of $11,190 for a period of 4 years. Given a desired rate of return of 9%, the investment will generate a (Do not round your PV factors and intermediate calculations. Round your answer to the nearest whole dollar):

negative net present value of $2,752.

negative net present value of $36,252.

positive net present value of $36,252.

positive net present value of $2,752.