James Just recieved an $8,000 inheritance check from the estate of his dead uncle. James wants to set aside enough money to pay for a trip in 5 years. If the trip is expected to cost $5,000 How much of the $8,000 must james deposit now if the rate of return is 12% per year in order to have the $5,000 in five years? $2,835 $2,000 $2,535 $5,000 Question #2 Company is Analyzing A,B,C Each has a useful life of five years

	A	B	C
Initial Investment Required	$500,000	$480,000	$630,000
Present Value of Future Cash Flow	$675,000	$520,000	$690,000
Internal Rate of Return	18%	14%	16%

Which of the following statements is correct? A) Project B is preffered over Project C according to the project profitability index B) Project C is preffered over Project A according to the project profitability index C) Project B is preffered over Project A according to the internal rate of return D) Project A is preffered over Project C according to a net present value ranking