1. Wright Corp. is selling a product that it expects will generate cash flows of $578,000 every year. The company’s required rate of return is 13.2%. What is the value of this product to the company?
2. For his retirement, Chris plans to invest $16,000 at the beginning of each year for 30 years. If he earns 8.8% per year, how much will he have when he retires?
3. What is the interest on a $1,000 zero coupon bond with a yield of 6.75% for 2 years?