Q1) Sea Masters Co. has identified an investment project with the following cash flows for the next 5 years. If the discount rate is 7.7 percent, the present value of these cash flows is $__________. Round it to two decimal places without the $ sign, e.g., 23456.34

Year Cash Flows 1 $21,000 2 31,000 3 36,000 4 50,000 5 87,000

Q2) Mary wants to retire in 36 years with $1 million in her retirement account. To that end she decides to save money every year in a savings plan that pays 11.4 percent annually. Her first contribution will occur at the end of the year (one year from today). She needs to save $__________ each year to the savings plan. Round it to two decimal places and do not include the $ sign, e.g., 1234.56.

Q3) Suppose an investment that pays $34,000 per year for the foreseeable future. If the required return on this investment is 11 percent, how much are you willing to pay for the investment today? (Do not include the dollar sign ($), and round your answer to two decimal places. (e.g., 123456.45)

Q4) Suppose you are going to receive $19,000 per year for 9 years at the end of each year; thus you receive the first payment one year from today. Compute the present value of the cash flows if the appropriate interest rate is 5 percent. Round it two decimal places, and do not include the $ sign, e.g., 123456.78.