1. If a project has an initial cost of $50,000.00 and no other costs throughout the life of the project, what is the PI for the project given the NPV is $3,620.00?
2. To pay for your child's education, you wish to have accumulated $13,000 at the end of 9 years. To do this, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 12 percent compounded annually, how much must you deposit each year to obtain your goal?
The amount of money you must deposit each year in order to obtain your goal is $__. (Round to the nearest cent.)
3. On May 1st 2001, Amy inherited a perpetuity with annual payments starting in six months. The first payment was $6000 and after that the paymehts increased by 7% each year. Find the value of the perpetuity on December 1st 2009, if the annual effective interest rate was 6% from May 1st 2001 through May 1st 2005 and 4% thereafter.