If you put up $85,000 today in exchange for an 8%, 10 year annuity what will be the annual cash flow?

12. Peter purchased a stock for $50. He received dividends in years once, two and three of $1.2, $1.00 and $.95 in year 4 he sold the stock for $60, what is his internal rate of return (IRR)?

13. Mary invested in an asset that cost $10,000 that will supply her $2000 in year 1, $1500 in year 2, $5000 in year 3 and $6000 in year 4. If Mary wanted to earn 10% on her investment calculate the net present value (npv).

14. Joseph had an investment that will supply her $1400 in year 1 , $1500 in year 2, $4000 in year 3 and $1000, in year. He wanted to know how much he should be willing to pay for that investment today if he wanted to earn 15% on his investment ? ie find the NPV.