QUESTION 1 A grandmother wants to provide a college fund for her grandchild who is 3 years old. She would like to be able to have $50,000 accumulated in 15 years. If she can earn 8% on her investment, how much does she need to invest today to achieve her goal? QUESTION 2 If you invest $9,000 today at 8%, how much will you have in 20 years? QUESTION 3 How much do you need to invest todayat 6% in order to receive $7,000 at the end of each of the next 5 years? (at which time your funds will be depleted) QUESTION 4 If you invest $3,000 at the end of each year at 8% for 40 years, how much will you have in 40 years? YOLUTION The following operating results relate to the operations of Sea the World Cruises, Inc. Gift Shop Spa Services Casino Sales $5,000,000 $7,000,000 $10,000,000 Variable Costs 4,500,000 3,000,000 10,500,000 Contribution Margin 500,000 4,000,000 (500,000) Fixed Costs 600,000 1,000,000 2,000,000 Operating Income (100,000) 3,000,000 (2,500,000) 50% of the total fixed costs in each divison are common allocated costs that will be incurred by the company regardless of whether the division is dropped. Identify which (if any) of the divisions should be eliminated. - 1. Gift Shop A. Eliminate - 2. Spa Services B. Keep - 3. Casino QUESTION 6 Ajax is considering investing in a new machine that costs $40,000. It is expected that the new machine will save $9,000 a year in operating costs over the next 6 years. Determine the Net Present Value of this investment if the company's required rate of return is 14%. (Do not use $ in your answer. Round to nearest whole dollars.)