What is the present value of the following cash flows at a discount rate of 6%? Years 1 5 $10,000 Years 6 10 $12,000 Years 11 20 $15,000

• A. $109,896
• B. $119,157
• C. $141,544
• D. $129,639

If a professor currently earns $80,000 per year and expects annual salary increases of 3%, approximately how long will the professor have to work before his/her annual salary reaches $500,000 per year?

• A. 62 years
• B. 49 years
• C. 101 years
• D. 84 years