1.What is the present value of a perpetuity that pays $3,000 per year if the cost of capital is 6.0%? Assume payments occur at the end of the year.

2. A star quarterback just signed with a team that offered a contract that pays $10,000,000 today, $2,000,000 at the end of year 1, $3,000,000 at the end of year 2, and $6,000,000 at the end of year 3. If the discount rate is 6%, what is the present value of this compensation package?

3. You are purchasing new 3D printing equipment that has an initial cost of $44,000. The equipment will have the annual operating and maintenance costs indicated in the table. Annual costs occur at the end of the year.

Year 1	$2,500
Year 2	$3,000
Year 3	$1,000
Year 4	$5,000
Year 5	$3,000

If your cost of capital is 14%, what is the equivalent annual cost of the equipment?

Enter your answer as a positive number.

4.

What is the profitability index of a project with the cash flows in the table? Assume a discount rate of 5%.

CF0	-$115,000
CF1	$39,000
CF2	$63,000
CF3	$51,000
CF4	-$15,000
CF5	$91,000

Keep your answer in decimal form rounded to 4 places.