I am going through a practice exam for my finance class and need help computing the following problems (it can be algebraically or through a financial calculator as long as a formula is present along with what buttons to key in for reference)

A sports team in an effort to solve the salary cap problem has offered a player a contract of $1 million dollars a year for the next season with the payments growing at 7% per year for the next 25 years. The player believes the discount rate for such payments is 13%. What is the value today of taking this contract?

a.$884,956.09b.$5,824,965.76C.$12,405,955.40d.$13,614,809.32e.$16,666,666.67.

The potential owner/managers of the yet to be formed new In-Line Blade Company are evaluating the prospects for the business. The new equipment is expected to be $5.2 million in year 0 and have after-tax cash flows of $400,000 for the first two years, $750,000 in the next two years, and $1,200,000 per year thereafter indefinitely. The owners estimate that they require a 15% rate of return. What is the net present value of the In-Line Blade Company; should they go forward with the investment?

a.$-219,428; nob.$646,278; yesc.$728,126; yesd.$742,196; yesE.$946,261; yes

.The BobIU Computer Graphics Co. has just produced a new multimedia graphics chip which will cost $5,000,000 this year to put into production. They anticipate annual net cash flows of $3 million next year and $2 million, $1 million, $.5 million, $.25 million, and then $0 over each of the following years. The two owners require a 15% return on their investment. What is the value of this investment to the firm?

a.$-811,329.97 b.$-371,782.85 c.$ 42,948.20 D.$188,670.03e.$307,317.68

John borrowed $30,000 to finance his college education. If the annual interest on the loan is

8%, and he will pay off the loan in 10 equal, annual end-of-year payments, what is his

annual payment?

a.$3,885.14b.$4,076.04 c.$4,271.33 D.$4,470.88

19.Comet Powder Company has purchased a piece of equipment costing $100,000. It is expected to generate a ten-year stream of benefits amounting to $16,000 per year. Determine the rate of return Comet expects to earn from this equipment.

a.16.3% B. 9.61% c. 8.34% d.11.89%

Charles wishes to accumulate $50,000 by the end of 10 years from today by making equal annual end-of-year payments over the next ten years. If Charles can earn 7% on his deposits, how much must he deposit at the end of each year?

a.$3,975 b.$6,475 C.$3,619 d.$4,513

23.Jack borrowed $20,000 to finance his college education. If the annual interest on the loan is

5%, and he will pay off the loan in 10 equal annual end-of-year payments, how much total

interest will he pay?

a.$7,173.59b.$2,717.35 C.$5900.91 d.$2590.09

24.Acme Motor Company has purchased a piece of equipment costing $100,000. It is expected to generate a ten-year stream of benefits amounting to $16,274 per year. Determine the NPV of this investment if the cost of capital is 9%.

A.4,441 b.9,200 c.zero d.1,275

.The common stock of Clinton Kneepads behaves rather strangely (as does its owner). It is up

3% one day, and down 3% the next, without fail. What is the stock price after 200 days of

such activity? Assume it starts out at $20.

A.$18.28b.$19.50 c.$21.50 d.$15.57e.none of the above

33.The annual subscription to a health magazine is currently $50, and is expected to increase by 6% per year forever. A life subscription is $410, payable today, and the discount rate is 10%. In order to justify your subscription, approximately how many more years must you live?

a.5 years B.10 years c.15 years d.17 years e.20 years

34.In September 1626, Peter Minuit purchased Manhattan Island for the equivalent of $24. Today, the island and real estate affixed thereto are worth $3 trillion. What annually compounded rate of return is implied by these numbers?

a.5.17%b.5.43%c.5.87%d.6.45%E.6.90%