In the future, Samuel raises enough money to repeat this process 5 times. If he wants to maximize his expected return, what should he do? Choose 1 answer: Start small companies all 5 times. B Start large companies all 5 times. Start small companies 3 times and large companies 2 times. Not start any companies.

Professional cuddling therapy is a growing industry. You think you might be really good at cuddling so you decide to open a cuddle therapy business. Setting up the business will cost $14,000. Your business will be an all cash business so net income will be equal to your cash flows. You expect to earn $3,000 in net income in your first year of business and $4,000 in net income in the second year. In your third year you will sell the business for $15,000. These are all the cash flows associated with your cuddling business. The cost of capital is 15%. What is the NPV of this project? What is the IRR?

(Question #2) Dr. Pickens wants to buy a burger chain. He currently has $35,000. He needs to have $80,000 in 5 years. He can earn 12% compounded annually. If he saves money at the beginning of the year, how much must he save per year to meet his goal?

4.  A friend wants to retire in 30 years when he is 65. At age 35, he can invest $600/month that earns 6% each year. But he is thinking of waiting 15 years when he is age 50, and then investing $1,500/month to catch up, earning the same 6% per year. He feels that by investing over twice as much for half as many years (15 instead of 30 years) he will have more. A. What is the future value of each of these options at age 65, and under which scenario would he accumulate more money?Scenario A: $ _________, Scenario B: $___________ , Best:_________ B. He has decided he wants to save $1,000,000 before he retires. If he saves for 30 years, earning 6%, how much must he save each month to retire with a million dollars Monthly Savings $________ 5. TV’s R Yours is advertising a deal, in which you buy a flat screen TV/entertainment package for $1,205 (including tax) with one year before you need to pay (no interest is incurred if you pay by the end of the one year). How much would you need to…