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Name FN 320: Corporation Finance Fall 2020 Exam II (Part B) [You must show work for the problems. Each question is worth 5 points) 1.

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Name FN 320: Corporation Finance Fall 2020 Exam II (Part B) [You must show work for the problems. Each question is worth 5 points) 1. Capstone Crowns is considering a project that will produce cash inflows of $11,000 in year one, $24,000 in year two, and $36,000 in year three. What is the present value of these cash inflows if the company assigns the project a discount rate of 14 percent? 2. You are offered an investment opportunity of investing $5,000 today that promises to return $7,000 in 5 years. What would be your expected rate of return from this investment? 3. You and your brother are planning a large anniversary party 3 years from today for your grandparents' 50h wedding anniversary. You have estimated that you will need $3,000 for this party. You can earn 3.5 percent compounded annually on your savings. How much would you and your brother have to deposit today in one lump sum to pay for the entire party? 4. Today, Tony is investing $16,000 at 6.5 percent, compounded annually, for 4 years. How much additional income could he earn if he had invested this amount at 7 percent, compounded annually

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