1. A real estate venture will provide the following returns over the next four years: $26,500 (year 1); $33,250 (year 2); $48,500 (year 3); $62,375 (year 4). If the expected return is 10 percent compounded annually, what should you pay for it? How much is it worth if the return is compounded monthly?

2. ABC, Inc. is considering the purchase of new equipment. The annual sales are expected to be $699,369, the annual variable costs are expected to be $56,672, the annual fixed costs are expected to be $62,205, the annual depreciation expenses are expected to be $77,930. Assuming a tax rate of 34.8%, what is the operating cash flow?