1.Calculate the present value of a $34,000 cash flow expected in one years time for an annually-compounded interest rate of 15%. Show your answer to the nearest whole dollar.

2.Suppose you wish to borrow $60,000 at an annually compounded interest rate of 14% for a period of 9 years.

What would be the annual repayment?

3.Wardex Limited is considering an investment in a fixed asset which costs $378,000. The asset is expected to generate cash inflows of $108,000 each year for the next four years. The company intends to sell the asset at the end of year 4 for an estimated residual value of $22,000. The asset will be depreciated straight-line over the next four years. The discount rate for the project is 14%.

Calculate the net present value.