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Your wealthy neighbor has promised to give you $2,500 a year at the end of each of the next four years to help with college.

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Your wealthy neighbor has promised to give you $2,500 a year at the end of each of the next four years to help with college. Using a discount rate of 49%, the present value of the gift can be stated as 29% , n = 4 ). A. PV $2,500 (PV factor, i O B. PV $2,500 (Annuity PV factor, i 4 % , n 4). PV $2,500 x 4 % x 5 C. PV $2,500 (Annuity FV factor, i 4%, n 4). D. Redwood Corporation is considering two alternative investment proposals with the following data: Proposal X S900,000 Proposal Y $488,000 9 years Investment Useful life 9 years Estimated annual net cash inflows for 9 years $130,000 $42.000 Straight-line $84,000 Residual value S- Depreciation method Required rate of return Straight-line 15% 12% What is the accounting rate of return for Proposal Y? (Round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, XXX %.) OA. 4.06 % B. 11.119% O C. 17.21 % O D. 8.10 6

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