1. Compute the PI static for your firm's new project if the appropriate cost of capital is 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal laces.) Your firm's project Time 0 1 2 3 4 5 6 Cash Flow -720 100 540 740 740 340 740 Should the project be accepted or rejected?

2. What is the value in year 6 of a $1,100 cash flow made in year 9 when interest rates are 8.4 percent?

3. Last year, PJ's Ice Cream Parlors, Inc. reported an ROE = 12.1%. The firm's debt ratio was 49%, sales were $36 million, and the capital intensity ratio was .86 times. What is the net income for PJ's last year? (Do not round intermediate steps.)

$4.36 m

$1.91 m

$3.75 m

$30.96 m