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QUESTION 4 Project Z has an initial outlay of $17,000 and generates positive cash flows in years 1, 2, 3 and 4 of $3,212, $2,681, $4,238, and $4,239 respectively. Using a discount rate of 14.5%, what is the net present value (NPV) of this project? Show your answer to the nearest dollar and if it is negative, be sure to include the negative sign. QUESTION 5 Match the IRR with the cash flows. - CF0:-2,053 CF1: 605 CF2:536 CF3: 673 CF4: 630 - CFO: -1,685 CF1: 601 CF2:520 CF3: 528 CF4: 685 CF0:-2,053 CF1: 559 CF2: 535 CF3: 549 CF4: 573 - CFO: -1,841 CF1: 598 CF2:554 CF3: 535 CF4: 546 - CFO: -1,538 CF1: 681 CF2: 652 CF3: 502 CF4: 592 A. 22.1% B. 14.1% C. 3.1% D 7.29% E. 8.3% QUESTION 6 You deposit $50,000 in a retirement account today and then add $1,000 per month over the next 20 years. What annual rate of return do you have to earn in order to have $1,000,000 at the end of the 20 years? 15.49% 12.08% 9.22% 7.68% QUESTION 7 Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect: Andy's quantity of pizza demanded to decrease. Andy's demand for beer to increase. Andy's demand for pizza to decrease. Andy's demand for pizza to increase. QUESTION 8 Which of the following sets of Excel entries will correctly solve this problem: Jim paid $138,000 for an old house to renovate. He spent an average of $3,216 per quarter over the next two years as he readied the renovated house for sale. He wants to set the price of the house high enough so that he will earn an annual rate of return of 12% for his investment. Given that information, what price should Jim set on the house? NPER-B RATE-3.0000% PV-($138.000) PMT-$3,216) solve for FV O NPER-B RATE=3.0000% PV-($138.000) PMT $3,216 solve for FV ONPER-2 RATE=12.0000% PV={$138,000) PMT=($12.864) solve for FV NPER=24 RATE=1.0000% PV=$138,000) PMT=83.216) salve for FV QUESTION 9 Cindy and Mike managed to save $314,000 in their retirement account, which earns 7.2 percent annual interest. They plan to live on this money and will begin withdrawing $6,000 per month out of the account until the money in the account is gone. How long, in months, will their money last? (Show your answer to two decimals, e.g., 12.34; fractional months are okay

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