You are offered the opportunity to put some money away for retirement. You will receive four annual payments of $20,000 each beginning in 40 years. How much would you have to invest today if you expect an interest rate of 5% annually? A) $8, 526.78 B) $2, 840.91 C) $10, 073.74 D) $11, 363.65 How much must be invested today in order to generate a five-year annuity of $1,000 per year, with the first payment one year from today, at an interest rate of 12%? A) $3, 604.78 B) $3, 746.25 C) $4, 037.35 D) $4, 604.78 Net working capital refers to: A) current assets and current liabilities; B) the difference between current assets and current liabilities; C) assets with a short life; D) liabilities with a short life. A firm's average tax rate is 20%. Its net income is $2,000. Its interest expense is $1,000. What is the EBIT of the firm? A) $2, 500 B) $3, 500 C) $4, 500 D) $5, 500 You want to purchase a new car, and you are willing to pay $30,000. If you can invest at 6% per year and you currently have $20,000, how long will it be before you