Can I get some help with this assignment. I need to be able to see the work so I can work past my errors. Thanks

1. How much would you have to invest today at 8% compounded annually to have $25,000 available for the purchase of a car four years from now? 2. After a car accident, your insurance company offers you a choice of one of the three following alternatives: $10,000 now; $2,000 a year for eight years; or $24,000 at the end of eight years. If you could earn 12 percent annually, which alternative would you choose? You must give the present value of each alternative. Alternative 1 Alternative 2 Alternative 3 3. Your grandfather placed $2,000 in a trust fund for you. In 10 years the fund will be worth $5,000. What is the rate of return on the trust fund? 4. Many economists view a 3% annual inflation rate as \"acceptable\". Assuming a 3% annual increase in the price of automobiles, how much will a new Suburban cost you 5 years from now, if today's price is $38,000? 5. An account was opened with an investment of $1,000 10 years ago. The ending balance in the account is $1,500. If interest was compounded annually, what rate was earned on the account? 6. Robert Watts has just retired after 25 years with the electric company. His total pension funds have an accumulated value of $180,000 and his life expectancy is fifteen more years. His pension fund manager says he can earn a 9% return on his assets. What will be his yearly annuity for the next fifteen years? 7. Dan Rogers borrows $80,000 at 14 percent interest toward the purchase of a home. His mortgage is for 25 years. a. b. How much will his annual payments be (home payments are usually on a monthly basis, but we shall do our analysis on an annual basis for ease of computation. How much interest will he pay over the life of the loan? 8. Alan has saved up $252,000. How much more must he save each year over the next 20 years in order to have a total of $1 million? Alan earns 5% interest, compounded annually. 9. You deposit $5,000 in an account that pays 8% interest per annum. When your child is ready for college, it has grown to $20,000. How long did you have it on deposit. 10. Under MACRS, an asset which originally cost $10,000 is being depreciated using a 5-year normal recovery period. What is the depreciation expense in year 3? A. $1,900 B. $1,200 C. $1,500 D. $2,100 11) The depreciable value of an asset, under MACRS, is ________. A) the full cost excluding installation costs B) the full cost minus salvage value C) the full cost including installation costs D) the full cost including installation costs adjusted for the salvage value Answer: C 12. A corporation A. must use the same depreciation method for tax and financial reporting purposes. B. must use different depreciation methods for tax and financial reporting purposes. C. may use different depreciation methods for tax and financial reporting purposes. D. must use different (than for tax purposes), but strictly mandated, depreciation methods for financial reporting purposes. 13. Under MACRS, an asset which originally cost $100,000 is being depreciated using a 10-year normal recovery period. The depreciation expense in year 11 is A. $3,000. B. $4,000. C. $0. D. $6,000. 14. Depreciation is a source of cash inflow because A. it is a tax-deductible non-cash expense. B. it supplies cash for future asset purchases. C. it is a tax-deductible cash expense. D. it is a taxable expense. 15) Given a financial manager's preference for faster receipt of cash flows, ________. A. a longer depreciable life is preferred to a shorter one B. a shorter depreciable life is preferred to a longer one C. the manager is not concerned with depreciable life, because depreciation is a noncash expense D. the manager is not concerned with depreciable life, because once purchased, depreciation is considered a sunk cost. 16. Under MACRS, an asset which originally cost $100,000, incurred installation costs of $10,000, and has an estimated salvage value of $25,000, is being depreciated using a 5-year normal recovery period. What is the depreciation expense in year 1? A. $15,000 B. $12,750 C. $11,250 D. $22,000 17. In their meeting with their advisor, Mr. and Mrs. O'Rourke concluded that they would need $40,000 per year during their retirement years in order to live comfortably. They will retire 10 years from now and expect a 20year retirement period. How much should Mr. and Mrs. O'Rourke deposit now in a bank account paying 9 percent to reach financial happiness during retirement? 18. Nico is 30 years old and will retire at age 65. He will receive retirement benefits, but the benefits are not going to be enough to make a comfortable retirement life for him. Nico has estimated that an additional $25,000 a year over his retirement benefits will allow him to have a satisfactory life. How much should Nico deposit today in an account paying 6 percent interest to meet his goal? Assume Nico will have 15 years of retirement. 19. You have been given a choice between two retirement policies as described below. Policy A: You will receive equal annual payments of $10,000 beginning 35 years from now for 10 years. Policy B: You will receive one lump-sum of $100,000 in 35 years from now. Which policy would you choose? Assume rate of interest is 6 percent. 20. $100 is received at the beginning of year 1, $200 is received at the beginning of year 2, and $300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is ________. A) $1,536 B) $ 672 C) $ 727 D) $1,245