QUESTION $9$

Consider the following variables from last year for IBU Inc.:

This year, sales growth is expected to be $5\mathrm{.}4\%.$ IBU Inc. has sufficient capacity

so depreciation is expected to stay the same next year. What is the expected net

income for next year?

QUESTION $10$

If you invest $$15,000$ today, an investment guarantees that $24$ years from today

you will have $$54,750.$ What annual rate of interest will you earn?

QUESTION $11$

You are expected to receive $$104,377$ in $13$ years from today. If you can earn $8\mathrm{.}24\%$ annually, what would the present value of this amount be$?$

QUESTION $12$

An investment is expected to earn you $$2,622$ in one year, $$4,472$ in two years and $3,229$ in three

years. If you can earn $16\mathrm{.}87\%$ annually, how much is this investment worth today. Hint: you need to

find the present value of each cash flow individually, then add them up

QUESTION $13$

How much would you be willing to pay to receive $$2,306$ every year forever if you could earn $9\mathrm{.}86\%$

annually? Round your answer to the nearest whole dollar.

QUESTION $14$

You have $$3,443$ to invest today and can choose an investment that offers either simple interest or

compound interest at the rate of $5\mathrm{.}27\%.$ How much more will you earn with compound interest vs simple

interest in $5$ years? Enter your answer as a positive number and rounded to the nearest whole dollar.

QUESTION $15$

What is the rate of return that can turn $$87,919$ today into $$546,869$ in $12$ years? Enter your answer to two decimal points $($i$.$e$.4\mathrm{.}15\%)$

QUESTION $16$

If you have $$57,773$ today and can earn $6\mathrm{.}24\%$ simple interest annually, how much will you have in your

bank account after $18$ years? Please enter your answer rounded to the nearest whole number

QUESTION $17$

How long, in years, will it take you to turn $$19,346$ into $$35,529$ if you can earn $28\mathrm{.}75\%$ annually? Round

your answer to two decimal places $($e$.$g$.4\mathrm{.}2577$ years would be rounded to $4\mathrm{.}26$ years$).$

QUESTION $18$

Marco invested $$50,000$ in account that he predicts will earn $5\mathrm{.}25$ percent per year,

compounded annually. What does he expect his account to be worth in $45$ years?

QUESTION $19$

A project has an initial cost of $$732,491.$ The project is expected to have cash flows of

$$189,978$ in year $1,$$$176,568$ in year $2,$$$453,349$ in year $3,$$$412,753$ in year $4$ and

$$402,670$ in year $5.$ What is the NPV for this project if the discount rate is $30\%?$ Enter

your answer rounded to the nearest dollar. If the NPV is negative, do not forget to put the