Question 1

What amount of cash would result at the end of one year, if $25,000 is invested today and the rate of return is 9%? (Do not round your PV factors.)

A. $25,000

B. $27,000

C. $27,250

D. $22,750

Question 2

Lane Company is considering purchasing a capital investment that is expected to provide annual cash inflows of $11,900 per year for 3 years. Assuming that the required rate of return is 6%, what is the present value of these cash inflows? (Do not round your PV factors and intermediate calculations. Round your final answer to the nearest dollar.)

A. $31,809

B. $29,974

C. $31,773

D. $33,679