1. A piece of undeveloped property is listed for sale at a price of $85,000. You believe that the land will be worth $115,000 in 5 years. What is the most that you should be willing to pay for the property? Assume a discount rate of 7%

2. Assuming a required return of 12% : PV = ?

A $25,000 annual cash flow that begins in one year and continues for 25 years?

B. $25,000 annual cash flow that today and continues for 25 years?

3. A straightforward formula for net profit as a percent is:

a. ((Revenue – Costs) x 100)/Costs

b. ((Revenue – Costs) x 100)/Revenue

c. (Costs + Profit)/Revenue

d. (Profit % x 100)/Costs