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Q1 Don Thompson plans to work for ten years and then take an extended vacation. He expects to save $3,000 a year for the first five years and $5,000 a year for the following five years. These savings will start one year from now. Thompson has $10,000 in an account paying 6% compounded annually and will begin putting his future savings into the same account when they begin. Given these assumptions, the amount of money that Thompson will have at the end of year 10 is closest to: A. $64,372 B. $68,725 C. $71,774 Q2 Mike Ellers is evaluating a Venture capital investment that requires an initial investment of $2 million and, if it survives, the venture is expected to have a value of $15 million at the end of four years. Year 1 2 3 4 Probability of failure 20% 20% 15% 10% What is the NPV of this investment given the conditional failure rates above and a required rate of return of 25%? A. $1,008,102 B. $1,133,440 C. $1,710,560