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1. The Sutherland Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever. If the required return on this investment is 5,8%, how much will you pay for the policy? (Round the final answer to 2 decimal places. Omit commas, spaces or S sign in your response.) (1 Point) Enter your answer 2.6-1 Buena Vista Co, has identified an investment project with the following cash flows. Year 1 $720 Year 2 $930 Year 3 $1,190 Year 4 $1,275 If the discount rate is 10%, what is the present value of these cash flows? (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit commas, spaces & $ sign in your response) (1 Point) Enter your answer 3. Intercontinental Inc. has an unfunded pension liability of $60,000 that must be paid in 5 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present if the relevant discount rate is 6%, what is the present value of this liability? (Do not round intermediate calculations and round your final answer to 2 decimal places. Omit any commas, spaces or $ sign in your response.) (1 Point) Enter your answer 4. Bank of Vancouver pays 7% simple interest on its savings account balances, whereas Bank of Calgary pays 7% interest compounded annually. If you made a $6,000 deposit in each bank, how much more money would you earn from your Bank of Calgary account at the end of 9 years? (Do not round intermediate calculations and round your final answer to 2 decimal places. Omit any commas or spaces or sign in your response.) (1 Point) Enter your

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