1. Services United is considering a new project that requires an initial cash investment of $78,000. The project will generate cash inflows of $29,500, $32,700, $18,500, and $10,000 over each of the next four years, respectively. How long will it take to recover the initial investment?

2.74 years

2.85 years

2.99 years

3.27 years

3.68 years

2. What is the price of a U.S. Treasury bill with 56 days to maturity quoted at a discount yield of 1.15 percent? Assume a $1 million face value.

3. You are scheduled to receive annual payments of $10,500 for each of the next 24 years. Your discount rate is 10 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?

A) $9,434 B) $10,225 C) $9,973 D) $10,500 E) $11,550.