1. You are going to invest $500 at the end of each year for ten years. Given an interest rate, you can find the present value of this investment by:

I.Adding the cash flows together and finding the present value of the sum using the appropriate present value factor.

II.Applying the proper present value factor to each cash flow, then adding up these present values.

III.Finding the future value of each cash flow, adding all of the future values together, then finding the discounted present value of this future value sum.

IV.Finding the future value of the entire payment stream.

2.. Your parents just deposited $20,000 into a bank account paying 6% interest. Starting tomorrow, you plan to withdraw equal amounts from the account at the END of each of the next four years. What is the MOST you can withdraw annually?

3. Mulligan, Inc. has net income of $50,000 and total assets of $400,000. The dividend payout ratio is .6. What is the internal growth rate?IGR=(ROAb)/(1-ROAb) b is the dividend payout ratio.

4.. If cash flow from operations is $7,300, net capital spending is $3,500, and net working capital increases by $1,600, what is cash flow from assets?

5.. The Time Clock Co. is trying to decide which one of two projects it should accept. Both projects have the same start-up costs. Project 1 will produce annual cash flows of $61,000 a year for seven years. Project 2 will produce cash flows of $45,000 a year for fourteen years. The company requires an 11 percent rate of return. Which project should the company select and why?