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A company has invested in machinery that is expected to produce $ 6 , 4 5 0 , $ 7 , 2 2 5 ,

A company has invested in machinery that is expected to produce $6,450, $7,225, $7,500, and $7,500 respectively, at the end of the next four years. The cash flows will then be invested in a contract earning a rate of return of 10%. What is the expected future value of the account (end of the 4th year).
A. $31,770
B. $32,020
C. $34,150
D. $33,077
A pension fund is considering making an investment that will pay $14,000, $16,500, and $20,000, respectively, at the end of the next three years. The investment needs to produce a return of 14%. What is the present value of these cash flows to the Pension? (Round to the nearest dollar.)
A.$38,476
B. $36,022
C.$41,675
D.$39,208
An insurance company has a contract which guarantees cash flows of $40,250 at the end of each year for the next five years. A company is considering buying the contract but requires a discount rate of 15% on its investments. What is the present value of this investment to the company? (Round to the nearest dollar.)
A. $124,868
B. $186,250
C. $134,924
D. $101,766
A new college graduate is looking to save for retirement. The graduate will invest $4,500 at the end of each year for the next 45 years in a portfolio that is expected to earn 10% a year. How much will the investor have at the end of 45 years? (Round to the nearest dollar.)
A. $2,667,904
B. $3,594,524
C. $5,233,442
D. $3,235,072

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