3. Many economists view a 3% annual inflation rate as "acceptable". Assuming a 3% annual increase in the price of automobiles, how much will a new Suburban cost you five years from now, if today's price is $48,000?

A. $41,405

B. $48,000

C. $54,024

D. $55,200

E. $55,645

4. Kwantlen University received a significant donation of $50,000 per year for the next fifteen years, with the first payment being received today Given a discount rate of 5.5% determine the present value of the donation

A. $531,682

B. $530,582

C. $529,482

D. 5528 382

E. $554,282

5. You need to borrow $2,000 quickly, and the local pawn shop will give it to you if you promise to repay them $200.92 monthly over the next year. From the pawn shop's viewpoint what is the IRR of this transaction?

A. 1.0% per month

B. 1.7 % per month

C. 2.0% per month

D. 2.5% per month

E. 3.0% per month

6. If you are contrasting the most optimistic situation to the most pessimistic situation which might be created by a project you are conducting---------analysis.

A Sensitivity.

B. Scenario.

C. Accounting break-even.

D. Financial break-even.

E. Cash break-even. Thanks in advance Please Explain in detail the calculation.