1. An investment under consideration has a payback of six years and a cost of $573,000. If the required return is 12 percent, what is the worst-case NPV? The best-case NPV? Explain. Assume the cash flows are conventional.
2. At you spend $50 in cash per month at a constant rate throughout the month. You wish to figure out what is the optimal strategy for withdrawing cash from the ATM without running out of cash.
3. On March 5, 2013, the Dow Jones Industrial Average set a new high. The index closed at 18,634.53, which was up 115.20 that day. What was the return (in percent) of the stock market that day?