1. You plan to make quarterly deposits into a fund that pays an interest rate of 9% per year. Interest will be compounded monthly. If you invest $4,000 each quarter for 8 years what is the amount of money you will have at the end of the 8 years?
2. What is the discounted payback period for the investment project that has the following cash flows, if the discount rate is 14 percent?
Year Cash flows
0 -4539
1 2093
2 2759
3 2905
4 2142
3. What is the payback period for the investment project that has the following cash flows?
Year Cash Flows
0 -66692
1 27535
2 27640
3 29204
4 27093