Please answer all and explain how to find the answers. This is a quiz that I have already taken and did not do well on. I just need someone to explain so that I can see where I went wrong.

QUESTION 1

An investment promises the following cash flows at the ends of years 1 through 5, respectively: $5000; $7000; $9000; $11000; $4000. The investment is selling for $26,000 today. What rate of return is this investment promising?

A 10.08%

B 12.54%

C 9.88%

D 8.85%

E 11.57%

QUESTION 2

What is the most that you would be willing to pay today for the following stream of cash flows? Assume that your required rate of return on such an investment is 8.5%. The cash flow stream consists of the following amounts at the ends of years 1 through 5, respectively: $5000; $7000; $9000; $11000; $4000.

A $27,388.12

B $28,198.15

C $26,554.36

D $24,715.66

E $30,009.67

QUESTION 3

An investment promises a lump-sum payout of $100,000 at the end of 10 years from today. What is the most that you would be willing to pay for this investment today if your required rate of return is 8% for the coming 4 years, and 12% for the next 6 years after that?

A $55,698.12

B $37,238.90

C $52,157.64

D $41,652.93

E $48,055.84

QUESTION 4

Delta Securities is offering a fixed payout of $5,000 at the end of each month

for the coming 5 years, followed by $8,000 at the end of each month for the next 5 years after that. What is the most that you would be willing to pay for this investment opportunity today if your required rate of return on this investment were 9%?

A $228,844.30

B $282,734.54

C $240,866.87

D $230,618.74

E $250,912.15

QUESTION 5

Bank X charges an APR of 7.00% on its loans, and compounds interest quarterly. The effective annual rate (EAR) on the banks loans is:

A 7.19%

B 7.21%

C 7.12%

D 7.23%

E 7.25%