There is a project with the following cash flows :

Year	Cash Flow
0	$ 24,300
1	7,200
2	7,800
3	7,200
4	5,300

What is the payback period?

Multiple Choice

4.00 years

3.84 years

3.40 years

2.71 years

3.66 years

A friend wants to borrow money from you. He states that he will pay you $4,800 every 6 months for 10 years with the first payment exactly 3 years and six months from today. The interest rate is an APR of 7.1 percent with semiannual compounding. What is the value of the payments today?

Multiple Choice

$55,281.22

$53,198.00

$55,086.53

$39,890.32

$56,922.75

Based on market values, Gubler's Gym has an equity multiplier of 1.51 times. Shareholders require a return of 11.11 percent on the company's stock and a pretax return of 4.89 percent on the company's debt. The company is evaluating a new project that has the same risk as the company itself. The project will generate annual aftertax cash flows of $287,000 per year for 8 years. The tax rate is 22 percent. What is the most the company would be willing to spend today on the project?

Multiple Choice

$1,491,160

$1,587,950

$1,839,942

$1,542,580

$1,609,618