A) Present Value - How much would you have to put in the bank today to have $100 at the end of five years if the interest rate is 10%?

B) Present Value of an Annuity - If the interest rate is 14%, how much would you have to put in the bank today so as to be able to withdraw $100 at the end of each of the next five years?

C) J. Renner Inc. has been offered a four-year contract to supply parts for a local business. The cash flow information for the project is detailed below:

Cost of equipment	$250,000
Working capital required	$20,000
Upgrading equipment in 2 years	$90,000
Salvage value of equipment in 4 years	$10,000
Annual net cash inflow	$120,000

The working capital would be released at the end of the contract in 4 years. The cost of capital is 14%. Compute the NPV of the project:

Cash Flow Description	Cash Flow	PV Factor	PV of Cash Flow
Cost of equipment
Working capital required
Upgrading equipment in 2 years
Salvage value of equipment in 4 years
Annual net cash inflow
Release of working capital
Total NPV

D) Henries Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $188,400, including freight and installation. Henries has estimated that the new machine would increase the companys cash inflows, net of expenses, by $25,000 per year. The machine would have a 12-year useful life and no salvage value. Compute the IRR of the project.

E) Johnson Co. is considering a project with an original cost of $105,000. The cash inflows the project would produce are as follows: Year 1: $30,000, Year 2: $25,000, Year 3: $20,000, Year 4: $25,000, Year 5: $25,000. Compute the payback period of the project.