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7. An investment will produce the following end-of-year cash flows: Year one $500 Year two $200 Year three $800 If the required rate of return

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7. An investment will produce the following end-of-year cash flows: Year one $500 Year two $200 Year three $800 If the required rate of return is 12%, what is the present value of this investment? a. $835 b. $1,175 C. $1,235 d. $1,500 8. If you finance a $45,000 BMW at 12% over 4 years what is your monthly car payment a. $1,565 b. $1,185 C. $985 d. $635

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