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Consider the following timeline: If the current market rate of interest is 7%, then the future value of this timeline as of year 3 is

Consider the following timeline:

If the current market rate of interest is 7%, then the future value of this timeline as of year 3 is closest to:

a. $1,720

b. $1,500

c. $1,404

d. $1,717

Which of the following organization forms for a business does not avoid double taxation?

a. Limited Liability Company

b. Limited Partnership

c. "C" Corporation

d. "S" Corporation

The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $450,000. The Sisyphean Company expects cash inflows from this project as detailed below:

Year One

Year Two

Year Three

Year Four

$200,000

$225,000

$275,000

$200,000

The appropriate discount rate for this project is 16%.

The NPV for this project is closest to:

a. $176,270

b. $179,590

c. $450,000

d. $123,420

You are considering purchasing a new automobile that will cost you $28,000. The dealer offers you 4.9% APR financing for 60 months (with payments made at the end of the month). Assuming you finance the entire $28,000 and finance through the dealer, your monthly payments will be closest to:

a. $467

b. $527

c. $1,454

d.$457

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