2.)Which TVM formula could you use to calculate the amount you will have at retirement if you save $5,000 each year during the 40 years you plan on working if the interest rate is 8%?

Group of answer choices

Uniform Series Present Value (USPV)

 

Uniform Series Compound Amount (USCA)

 

Single Payment Compound Amount (SPCA)

 

Fundamental Capitalization Formula

 

3.)A business is using a loan to finance 40% of the investment required for a project. The interest rate on the loan is 8%. The firm's required rate of return on equity is 25%. Their marginal tax rate is 25%.  What is this firm's weighted average cost of capital (WACC)?

Group of answer choices

WACC is 17.40%

 

Not enough information is given

 

WACC is 14.80%

 

WACC is 13.60%

 

4.)Based on the cash flows provided in the table below, what is the Payback Period for this project?

Year	NATCF
0	-15,000
1	9,000
2	6,000
3	3,000
4	3,000
5	3,000

Group of answer choices

5 or more years

 

3 years

 

2 years

 

4 years

 

5.)After a successful career, you have decided to honor your favorite professor at the U of I by establishing an endowment in their name. Endowment funds earn an annual return of 5%. How large of an endowment would you need to provide so that the fund would generate annual income of $35,000 perpetually (forever)?

Group of answer choices

1,000,000

 

700,000

 

625,000

 

875,000

- Fall e Safari File Edit View History Bookmarks Window Help canvas.illinois.edu uncements Enments ssions es le S bus 2,899 Google I Quiz: A... Use the information provided in the figure to choose the correct answer. NPV $200,000 $150,000 $100,000 $50,000 NPV by Discount Rate $0 0% 5% 10% 15% 20% 25% 30% -$50,000 -$100,000 zoom Thu Nov 9 12:27 AM Screen Shot 023-11...4.02 AM Screen Shot 2023-11...2.30 AM nitial Discount Rate nerate Project 1 ----Project 2 maining The IRR for Project 2 is negative The IRR for Project 1 is positive Project 1 is always preferred to Project 2 based on the NPV The MIRR for Project 2 is negative at a 10% discount rate NOV 9 tv A W zoom ortunity. pts) Screen Shot 2023-11...23.01 AM Share Screen Shot 2023-11...3.03 AM D Share Analyze Data Analyze Data R S T TCF Taxable Income 6,200 7,408 8,689 10,049 11,492 13,026 13,445 13,898 338 93