1. Wheels and More needs to maintain 8 percent of its sales in net working capital. The firm is considering a 5 year project which will increase sales from their current level of $110,000 to $146,000, $152,000, $158,000, $164,000 and $155,000 for Years 1 to 5 of the project respectively. What amount should be included in the project analysis for the net working capital for Year 3 of the project? A. $12,640 B. -$480 C. -$12,640 D. $0 E. $480

2. Luis has a a management contract which grants him a lump sum payment of $20 million to be paid upon the completion of his first five years of service. The company wants to set aside an equal amount of funds each year to cover this anticipated cash outflow. The company can earn 4.5 percent on these funds. How much must the company set aside each year for this purpose? A.$3,655,832.79 B. $3,798,346.17 C. $3,801,033.67 D. $3,775,042.93 E. $4,038,018.22