person is making bank de r s at the end of each year for hive years to provide the purchase a Assuming that the savings account in which she deposits the funds earns 796 per year, how expensive a car will she be able to purchase? (a) S 2,139. (b) $4,208. (c) S12,301. (d) $17,252. 10. What amount must be deposited today in order to accumulate $900 at the end of three years, assuming the deposit will earn 7% per annum? (a) $735. (b) $843. (c) S662 (d) $343. Alexandra would like to make a single payment today so that she can withdraw $10,000 at the end of each year for the next three years. If her funds can earn 9% per year, what amount does she have to invest today in order to accomplish this? (a) $ 7,722. (b) $25,313. (c) $12,950 (d) $32,781. Use the following information to answer Questions 12 and 13. Mangosteen Company is considering an investment in new equipment which costs $50,000. The useful life of the equipment is five years and there is no salvage value. The company uses the following depreciation amounts for tax purposes: Year 1, $7,500; Year 2, $11,000; Years 3 through 5, $10,500 per year. The new equipment will provide before tax operating cash flows of $20,000 per year. Mangosteen's marginal tax rate is 40% and the appropriate discount rate is 12%. 12. What is the after tax payback period? (a) 5.00 years. (b) 3.15 years. (C) 2.50 years. (d) 4.17 years