1. Future Value of Multiple Annuities Assume that you contribute $260 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $360 per month for another 20 years. Given a 9.0 percent interest rate, what is the value of your retirement plan after 40 years?
A. $1,283,932
B. $198,276
C. $196,800
D. $1,217,143
2. Your company has two other projects under consideration, Project B and Project C. It can only do one of the three projects. Project B has an NPV of $2,000, an ROI of 50% and a payback period of year 2. Project C has an NPV of $1,000, an ROI of 50% and a payback period of year 2. Using only these financial criteria to decide, which project should your company choose and why?