You are planning to purchase a restaurant and are wondering how much to pay for it. Youve estimated that the restaurant will generate $382,421 per year for the next 16 years, starting next year. If you want to earn 11.79% on your investments, how much should you pay for the restaurant today?

You have an investment that pays $5,026 each year for 4 years, starting next year. The interest rate is 4.5% compounded annually. What is the present value of this investment?

Cash-flow A consists of a level annuity of 7 equal payments of $10,486 starting in year 5 and a lump sum of $144,680 in year 13. If the interest rate is 4.52%, what is the present value of cash-flow A?