Reference no: EM133124789

Questions -

A. In 1895, the first U.S. Open F1 Championship was held. The winner's prize money was $150. In 2014, the winner's check was $1,620,000. What was the percentage increase per year in the winner's check over this period? If the winner's prize increases at the same rate, what will it be in 2040?

B. An investment project has annual cash inflows of $2,800, $3,700, $5,100, and $4,300, for the next four years, respectively. The discount rate is 14 percent. What is the discounted payback period for these cash flows if the initial cost is $5,200? What if the initial cost is $5,400? What if it is $10,400.

C. An investment project costs $14,000 and has annual cash flows of $3,700 for six years. What is the discounted payback period if the discount rate is zero percent? What if the discount rate is 5 percent? If it is 19 percent?

D. An investment project provides cash inflows of $675 per year for eight years. What is the project payback period if the initial cost is $1,700? What if the initial cost is $3,300? What if it is $5,600?