1. What is the profitability index for an investment with the following cash flows given a 9 percent required return?

Year Cash Flow

0 $-20,500

1 $7,200

2 $9,800

3 $8,400

2. Which of the following is not one of the three circumstances under which a listing contact terminates?:

1) the sellers move out of state

2) the specified period expires

3) the property is sold

4) one of the parties abrogates the terms of the contract