Question 6 1 pts You're saving for retirement. You think you need an income of $80,000 per year for 30 years after retirement and you have 40 years to go until retirement. How much money would you need to have saved today to not need to contribute any more money for the next 40 years if the interest/investment rate is 8% both before and after retirement? 0 43,670 35,900 0 56,800 O None of the above 1 pts Question 7 1 pts A project's cash flows are $100,000 per year from years 1 through 6. Between years 6 and 7 these cash begin to grow at 5%. You expect this growth to continue forever. What is the present value (at time 0) of the project's cash flows if the opportunity cost of capital is 9%? 0 2,013,790 0 2,140,790 0 2,260,790 None of the above 1 pts Question 8 Question 9 1 pts A risk free asset returns 2% annually and the market risk premium is 4%. How large of an investment in the market portfolio would leave you with $200,000 at the end of the year (this $220,000 includes both the initial investment and the returns earned over the course of the year)? $189,670 O $207,550 O $204,420 O 202,890 1 pts Question 10 Question 10 1 pts Assume M&M holds. Your firm has a total enterprise value of $200m. Its publicly traded equity has a market value of $100m and its publicly traded debt has a market value of $100m. The expected return on the firm's equity is 20% and the expected return on the firm's debt is 5%. The equity beta is 1.3 and the debt beta is 0.6. The risk free rate is 5%. Assume there are no taxes. What is the firm's overall expected return? O 11.5% O 12.5% 13.5% O 10.5%