Question 2 (0.2 points) How much would you need to gift to the university today to establish a scholarship fund that pays out $25000 in scholarships in one year and grows the scholarship payout by 3% per year? Assume that the university endowment earns 5% per year on its investments. Your Answer: Answer Hide hint for Question 2 Use the growing perpetuity formula. Question 3 (0.2 points) A firm with cost of goods sold of $8920 and inventories of $995 has an inventory turnover ratio of Round your answer to two decimal points; example 1.12. Your Answer: Answer Question 4 (0.2 points) What is the payback period for an investment project with an upfront cost of $4,000,000, but benefits of $350,000 per year forever? (Note: Enter the number of years as your answer, but do not enter "years", just the number.) Your Answer: 1 Answer Hide hint for Question 4 Payback period is the amount of time it takes to pay back the initial investment. Question 5 (0.2 points) You purchase machinery for $20,000 that generates after-tax cash flows of $7,500 annually for the next 4 years. The cost of capital (WACC) is 12.59%. What is the IRR for this project? The IRR cannot be determined. 13.2% 18.5% 12.6% Question 7 (0.2 points) You are making a $120,000 investment and feel that a 14% rate of return is reasonable, given the nature of the risks involved. You expect to receive $48,000 in the first year, $54,000 in the second year, and $76,000 in the third year. You expect to pay out $12,000 as a disposal cost in the fourth year. What is the net present value of this investment given your expectations? Your Answer: Answer Hide hint for Question 7 NPV is the sum of the discounted cash flows