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51) You plan to retire 32 years from today. Your retirement account has a current balance of $14,900. If you deposit $3,600 at the end

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51) You plan to retire 32 years from today. Your retirement account has a current balance of $14,900. If you deposit $3,600 at the end of each year for the next 32 years, what will be your account balance when you retire? Assume an 8.9% interest rate and the first deposit occuring one year from today. A) $943,942.49 B) $350,637.68 C) $806,788.45 D) $593,613.06 52) You have been asked to analyze a project using the internal rate of return (IRR) method. The project has an initial cost of $225,000 and will generate 4 equal annuat cash inflows of $64,000 with the first occuring 1 year from today. If your cost of capital is 5%, what should you do and why? A) accept the project because the IRR exceeds the cost of capital B) accept the project because the cost of capital exceeds the IRR C) reject the project because the IRR exceeds the cost of capital D) reject the project because the cost of capital exceeds the IRR 53) A project has an initial cost today of $164,000 and perpetual inflows of $18,600 at the end of each year with the first occurring one year from today. If the cost of capital is 5.2%, what is the project's net present value? A) $193,692.31 B) $192,567,95 C) $195,967.44 D) cannot be determined without additional information 54) An annuity makes 5 annual payments of $4,800 with the first payment occuring 10 years from today. If the cost of capital is 7%, what is the present value of the annuity? A) $10,00480 B) $10,705.13 C) 59,304.46 D) $11,561.54 55) You take out a loan and receive funds today. The loan is to be repaid over the next 3 years as follows: - One year from today you will make a payment of $1,100 - Two years from today you will make a payment of $2,200 - Three years from today you will make a payment of $3,300 If the interest rate is 4.19%, what is the amount of the loan you will receive today (to the nearest dollar)? A) $6,600 B) 56,000 C) $5,500 D) 57,000

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