You want to retire in 35 years to live off your savings. You want to have $10,500 per quarter in real dollars (i.e accounts for inflation) to spend for the next 30 years upon retiring. You assume inflation will be about 4.5% per year when you retire and remain at the same value for the next 30 years. If you can earn 8.5% per year on investments before and after retirement, how much will monthly payments be before you retire if you want to achieve this goal upon retirement? inflation Upon Retiring Before Retiring 4.5% nominal APR 8.5% PV PV real rate 4.00% FV FV Frequency 4 IY 4.0% I/Y N 360 420 PMT $10,500.0 PMT Assuming we begin a project, which has the same OCFS and WACC as those in this company. You spend $4,000,000 to begin a project and you increase initial (beginning) net working capital by 50,000. At the end of the project, you will be able to recover 30% of your investment back as the salvage value. What are the NPV, IRR and profitability Index (PI) of this project. What if payback is 1.5 years, what will be your decision? What if discounted payback is 2.5years, what will be your decision? Using If statements, show whether you'll accept or reject the project. Year O values Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Initial Outlay $ 4,000,000 BIT $ 2,950,000 Initial NWC 2$ 50,000 Depreciation $ 235,000 $ 2,950,000 $ 235,000 $ EBIT es* $ 1,032,500 Depreciation OCF Change in NWC Capital spending 105,000 $ 475,000 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Increase per year BIT 15% Depreciation Change in NWC Capital spending WACC 20% 10% 20% 9% Decision Using "If Statement" Tax rate 35% NPV IRR P.I. Payback Discounted Payback