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Question 1: Mal Reynolds borrows $270,000 from the Independents Free Bank to buy a used spaceship. The bank charges an interest rate of 12%. Five

Question 1: Mal Reynolds borrows $270,000 from the Independents Free Bank to buy a used spaceship. The bank charges an interest rate of 12%. Five years later, the Bank demands repayment in full, including all accumulated interest. There were no payments along the way. How much does Mal owe?

Question 2: Simon Tam is negotiating passage on Serenity as a clandestine fugitive from the planet Persephone. He is told that the 184 million kilometer trip to Osiris will cost $3,230. Alternatively, he can take a 344 million kilometer trip to Bellerophon, but that will cost $5,470. If cost depends on distance, what is the fixed cost, and what is the variable cost, of the voyage to Bellerophon?

Question 3: Kaylee wants to buy a machine shop on Beaumonde and someday retire from space flight. She purchases a contract to buy a little shop 10 years from today. At that time, it will be worth $80,000. What is the shop worth to Kaylee today? Kaylee has a discount rate of 67%.

Question 4: Serenity, Mac's Firefly-class spaceship, smuggles cattle from one planet to another. On one trip Mac purchased 84 head of cattle at a price of $2,000 for every 12. At his destination, he sells them for $1,000 apiece. What is Mac's Revenue and Profit?

Question 5: Jayne Cobb purchased 115 rounds of contraband ordinance for $92 total, and then 90 rounds for $72. What was the average cost of the first 123 rounds? This test has nine questions.

Question 6: Mac has bequeathed his spaceship Serenity to his second in command, Zoe, upon his death. Zoe knows that Mac's weekly hairbreadth escapes from mortal danger cannot continue forever, and she estimates he has eight years to live. Given that Serenity is now worth $270,000, what is the present value of her inheritance of the ship? Zoe has a discount rate of 50%.

Question 7: Inara Serra earns substantial funds in exchange for Companionship. A politician requests her company for two weeks for a fee of $22,000 per week. If she agrees to this arrangement, how much money should she have in 18 years from this one transaction, given a prevailing interest rate of 10%?

Question 8: The Alliance pays the Blue Hands men to seize the crew of Serenity. They pay $508,000 to have seven crew members seized or killed. Each arrest costs twice as much as the previous one. What is the marginal cost of the second arrest?

Question 9: Mac arranges financing for a load of contraband weapons he plans to sell to the rebels. The terms of the loan are as follows: The bank will provide Mac $34,000 today. Each year, for the next 10 years, Mac must pay the bank $8,100. Mac has a real discount rate of 23%. What is the net present value of this finance arrangement to Mac?

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