1. An investment would cost $50,000, have annual net cash flows of $8,000 per year for 6 years and a terminal value of $10,000. Would this be a good investment if you wished to earn 10% on your capital invested.

   		Yes, this investment is good because it has a positive NPV.
   		No, this investment should be rejected because it has a negative NPV.
   		You are indifferent to this investment because it breaks even.
   		Cannot be determined.

5 points

QUESTION 9

1. If an 8% return can be expected, how much would a 25-year old person have to put into a retirement fund each year to have $300,000 in the fund upon retirement at age 65?

   		$1,158.03
   		$6,555.66
   		$2,400.13
   		Cannot be determined