3. The Caulkins Co. is considering a project that will produce no cash inflows ($0) in year one, cash inflow of $54,800 in year two, and $72,900 in year three. What is the present value of these cash inflows if the company assigns the project a discount rate of 14 percent?

4. How much money does Albert need to deposit into his investment account today if he wishes to withdraw $15,000 per year for the next twenty-five years at every year end? He expects to earn an average rate of return of 7 percent in the investment account.