4. Suppose you plan to retire at age 70, and you want to be able to withdraw an amount of $98,000 per year on each birthday from age 70 to age 100 (a total of 31 withdrawals). If the account which contains your savings earns 5.3% per year simple interest, how much money needs to be in the account by the time you reach your 70th birthday? (Answer to the nearest dollar.) Hint: This can be solved as a 30-year ordinary annuity plus one withdrawal at age 70, or as a 31-year annuity due.

11. Suppose a company has proposed a new 4-year project. The project has an initial outlay of $64,000 and has expected cash flows of $18,000 in year 1, $25,000 in year 2, $29,000 in year 3, and $35,000 in year 4. The required rate of return is 11% for projects at this company. What is the discounted payback for this project? (Answer to the nearest tenth of a year, e.g. 3.2)

12. Suppose a company has proposed a new 4-year project. The project has an initial outlay of $26,000 and has expected cash flows of $6,000 in year 1, $9,000 in year 2, $10,000 in year 3, and $14,000 in year 4. The required rate of return is 11% for projects at this company. What is the net present value for this project? (Answer to the nearest dollar.)

14. If a project has an initial outlay of $39,000 and cash flows of $10,000 per year for the next 5 years, what is the IRR of this project? (Answer to the nearest tenth of a percent, e.g. 12.3).

15. Suppose a company has proposed a new 4-year project. The project has an initial outlay of $15,000 and has expected cash flows of $8,000 in year 1, $8,000 in year 2, $11,000 in year 3, and $14,000 in year 4. The required rate of return is 13% for projects at this company. What is the profitability index for this project? (Answer to the nearest hundredth, e.g. 1.23)