5- Elf Inc. has the following four year project: initial cost is $14,000; annual cash inflows are $3,550, $4,970, $3,480, and $4,000 respectively. Calculate the payback period.

a) 3.1 years b) 3.3 years c) 3.5 years d) 3.7 years or e) 3.9 years

6- Jack and Jill are twins. Jack invested $1,000, earned 9% annually, and now has $1,992.56. Jill invested $1,000, earned 6.47%, and now has $1,992.97. Jack invested his money _____ years ago.

a) 12 b) 11 c) 10 d) 9 or e) 8

7 - Jack Frost Corp. has a bond with a $1,000 face value, semi-annual coupons of $15 each, and a current market price of $936.48. If this bond has eight years to maturity, what is the yield to maturity on this bond?

a)1.97% b)2.10% c) 3.93% d) 4.21% or e) 5.32%