Part A)

Your firm has a risk-free investment opporunity with an inital investment of $155,000 today & recieve $180,000 in one year. For what level of interest rates is the project attractive?

The project will be attractive when the interest rate is any positive value less than or equal to ____% (round two decimals)

Part B)

Youre running a hot internet company. Analysts predict that its earnings will grow at 40% per year for the next five years. After that, as competition increases, earnigs growth is expected to slow to 2% per year & continue at that level forever. Your company has just announced earnings of $4 million. What is the present value of all future earnings of the interest rate 10%? (Assume all cash flows occur at the end of the year.)

The present value $_____ (round to two deimals places).

Part C)

Your firm spends $4800 every month on printing and mailing costs, sending statement to customers. If the interest rate is 0.55% per month, what is the present value of eliminating this cost by sending the statement electronically?

This cost has a present value of $_____ (round to the nearest dollar)