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9. FrackStar Corp. is estimating remediation costs related to cleaning up a fracking site in 20 years when the site is estimated to be ciosed.

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9. FrackStar Corp. is estimating remediation costs related to cleaning up a fracking site in 20 years when the site is estimated to be ciosed. Due to uncertainties related to the degree of possible site contamination, management estimates the following remediation costs and related probability of occurrence: Using the expected cash flow approach and assuming a risk-free rate of 4%, what value should FrackStar record for the remediation costs (to the nearest dollar) in the current year financial statements? 10. Which of the following investments are paying at the same annual interest rate? NOTE: Take your calculation to the nearest fourth decimal point (or two decimal points for a percentage). A) Investing $12,000 today in an account compounding monthly for 3 years and returning $14,105,20,5,4%. B) Investing $7,000 today in an account compounding quarterly for 6 years and returning $9,657,58.5. 4. . C) Investing $10,000 today in an account compounding semiannually for 4 years and returning 1.35 B) Investing $7,000 to 4% C) Investing $10,000 (D) A and B. E) A,B and C. 11. If Layla wants to make annual payments at the start of each of the next 8 years into a fund paying 5% compounded annually, what should her payment be if she wants to have $1000,09 in the fund at the end of the 8th year? At. 540.610 (3) 5.984 C) $7,500 D) $7,370 E) 5.5,076 12. BoSox Systems, Inc, borrowed \$180,00n on an instaliment note payable on January 1, 2020. The note bears a 9% interest rate and BoSox must make equal payments at the end of each month. starting January 31,2020 , for the next 10 years. What is the monthly payment required, so that BoSox can pay of the note as planned? Cafculate the monthly payment to the nearest doltar. A) $2,2801,635 (B) $2,280 C) $930 D) $11,848 E) $18,751

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