The dollar amounts that go in blanks (C) and (D), respectively, are a) $30.00 and $34.00. b) $3.00 and $4.00. c) 6.67 and $10.00. d) $1.00 and $1.50.

0 = -26,000 + 8,000(P/A,i∗,5) + 8,000(P/F,i∗,8) solve for i* it is the interest rate period

Use the table to determine the discounted payback period using 7% per yearPeriod (n)    Cash flow (An)    Cost of funds (7%)   Ending balance   0                       -85,000                              0                               - 85,000   1                        15,000   2                        25,000   3                        35,000   4                        45,000   5                        45,000   6                        35,000

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Two receipts of $1,000 each are desired at the EOYs 10 and 11. To make these receipts possible, four EOY annuity amounts will be deposited in a bank at EOYs 2, 3, 4, and 5. The bank’s interest rate (i) is 12% per year. (a) Draw a cash-flow diagram for this situation. (b) Determine the value of A that establishes equivalence in your cash-flow diagram. (c) Determine the lump-sum value at the end of year 11 of the completed cash-flow diagram based on your answers to Parts (a) and (b).

1. a) Find the future worth of the following cashliflow. $200 $200 $100 1 2 3 9 S K-5pk 6%- O $100 b) Find the present worth of cash flow in part (a) Equations: F = Px (1+i) ~

Identify the net cash flows shown below as either conventional or nonconventional. Year 0 1 2 3 4 5 (a) 400 300 200 100 0 −100 (b) −50 −50 −50 40 40 40 (c) −1000 200 300 400 300 200 (d) −6000 −500 −500 −750 10,000 −2000 (e) 50 −10 50 50 50 50

Suppose a bank offers you the following two year, non-cashable GICs (i.e., withdrawals are not allowed). The first one pays a monthly rate of return 0.245%, the second one pays a semi-annual rate of return of 1.47% and the third one a return of 2.75% for the first year and 3.25% for the second year. All interest payments are reinvested.(a) Which investment would you prefer?(b) Suppose you expect that interest rates decline to 3% after the first year. How does your answer change, if the two year GIC pays out the first interest payment (but not the principal) at the end of the first year?