1. Infosys Technologies, Inc., an Indian technology company reported a net income of $447,000,000 this year. Analysts expect the company's earnings to be $1,600,000,000 in five years. What is the company's earnings expected growth rate?

2. Saul Cervantes has just purchased some equipment for his landscaping business. For this equipment he must pay the following amounts at the end of each of the next five years: $14,288, $10,670, $7,877, $9,371, and $14,848. If the appropriate discount rate is 11.795 percent, what is the cost in today's dollars of the equipment Saul purchased today?

3. You are evaluating a growing perpetuity investment from a large financial services firm. The investment promises an initial payment of $28,679 at the end of this year and subsequent payments which will grow at a rate of 4.6 percent annually. If you use a 9 percent discount rate for investments like this, what is the present value of this growing perpetuity?

4. Sharon Kabana has won a state lottery and will receive a payment of $92,745.69 every year, starting today, for the next 20 years. If she invests the proceeds at a rate of 6.06 percent, what is the present value of the cash flows that she will receive?