56) You want to buy a $420,000 home. However, you can only afford to pay $2,338.25 per month for 30 years at an A) $0.00. How much, if any, must you pay today as a down payment to buy this home? B) approximately $10,000 C) approximately $20,000 D) approximately $30,000 57) A hockey team just bought a Zamboni ice resurfacing machine at a cost of $84,000. The team expects it will provide a cash benefit of $12,000 at the end of each year beginning 1 year from today. If the team's cost of capital is 11.7%, how many years will it take to break even on the investment ( NPV=0) ? A) 15.45 years B) 11.94 years C) 13.69 years D) 17.30 years 58) In 10 years, you would like to have $20,000 to take a first-class trip to Fij. Today, you deposit $2,000 into an account paying 4.32% interest. How much would you have to deposit at the end of each of the next 10 years to accomplish your goal? A) $1,390.73 B) $1,614.26 C) $1,891.78 D) $1,168.21 59) A project has an initial cost of $764,000. It will generate equal annual cash inflows of $142,000 at the end of each year with the first occuring 1 year from today and the last occuring 11 years from today. If the cost of capital is 8.3%, what is the net present value of the project? A) $176,071.81 B) $275,117.24 C) $235,142.94 D) $142,618.16 60) Congratulations! You just won the lottery. The lottery commission will pay you in one of the 2 following ways: Option 1: Receive $1.2 million today. Option 2: Receive 6 annual payments of $240,000 with the first payment being made to you today. If your cost of capital is 7%, what option should you take and why? A) option 1 because it has a higher internal rate of return B) option 2 because it is worth $240,000 more than option 1 C) option 1 because it has a higher present value D) option 2 because it has a higher present value