QUESTION 4 You are saving for a car that costs $60,000 that you hope to purchase in eight years. How much will you need to doprovodny in a savings account that earns 7%, compounded annually, to withdraw enough for the purchase? $55,800 b. $34,920 OG $56,076 Od $103,092 QUESTIONS How much would you need to deposit now in a savings account that earns 12% interest, compounded annually, in order to withdraw $5,400 at the end of every year for ten years? (Round your calculation to the nearest dollar and select the closest answer.) O $39,522 b. $39,402 O $30,511 od $54,000 QUESTION 10 How much would you need to deposit in a savings account that eams 11%, compounded annually, to withdraw $29.000 eight years from now?( Round your calculation to the nearest whole dollar amount and select the closest answer.) O a $25,774 Ob $12,584 OC $71,879 Od $25,866 QUESTION 14 You have a savings account that earns 5% Interest, compounded annually. A friend has offered you an investment opportunity, he says thank you invest in his new business, he will pay you $46,000 a year for the next five years. What is the maximum amount you would be willing to invest in your friend's business? O* $177.750 Oh $199,157 O $218.500 Od $219,047 QUESTION 16 Questions 16-19 can be answered using the following information regarding Minaret Corp which is considering to purchase a wice of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $120.00. The equipment will have initial cost of $601,600 and have an 8 year life. The equipment has no salvage value. The hurdle rate is 14% What is the payback period? (Round your calculation to the nearest while QUESTION 1 What is the net present value? (Select the answer that is closest to the nearest whole number due to rounding) O $43,081) $43.081 OG ($85,289) d. $85.289 QUESTION 22 You purchase a home for $240,000 that you expect to appreciate 6% in value on an annual basis. How much win the home be worth in ten years? (Round your calculation to the nearest dollar and select the closest answer) 4 $134,016 b. $429,792 O $766,424 Od $963,392 QUESTION 29 If you invest $11,000 today in a savings account that eams 0% interest, compounded annually, how much would be in the end of ten years? ( Round your calculation to nearest dollar amount and select the closest answer) O $4.646 $86,888 O $135, 541 Od $26,041 QUESTION 30 a If the ROI of a project is greater than the hurdle rate, the residual income will be greater than zero Ob. equal to operating income OC. greater than operating income d. greater than average invested assets QUESTION 30 If the ROI of a project is greater than the hurdle rate, the residual income will be: a greater than zero b.equal to operating income greater than operating income greater than average invested assets C. d
