1. If you deposit $3,500 today into an account earning an annual rate of return of 11 percent, what would your account be worth in 35 years (assuming no further deposits)? In 40 years?

Q:If you deposit $3,500 today into an account earning an annual rate of return of 11 percent, what would your account be worth in 35 years?

$ ____________ (Round to the nearest cent.)

2. Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new $330,000 Rolls-Royce Phantom. Jack currently has $30,080 that he may invest. He has found a mutual fund with an expected annual return of 7 percent in which he will place the money. How long will it take Jack to win Jill's hand in marriage? Ignore taxes and inflation.

Q: The number of years it will take for Jack to win Jill's hand in marriage is enter your response here years. (Round to one decimal place.)

3. Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of

$4,000,000 and would generate annual net cash inflows of $1,100,000 per year for 6 years. Calculate the project's NPV using a discount rate of

5 percent.

Q: If the discount rate is 5 percent, then the project's NPV is $___________

(Round to the nearest dollar.)