Assume the following for your corporation:

sales (aka revenue) = $403

Cost of goods sold = 160

depreciation = 35

Interest Expense = 20

tax rate = 40%

What is the corporation's total after tax net income? Answer to 1decimal places

2 Your salary next year is expected to be $40,000. Assume you expect your salary to grow at a steady rate of 3% per year for another 21 years and you retire at that time. If the appropriate cost of capital (aka discount rate) is 9.8%, what is the PV today of your future salary cash flow stream? For simplicity, assume the salary amounts are all at the end of each of the next 21 years. Answer to zero (0) decimal places. Hint:this is a growing "annuity" valuationproblem.

3. Consider the following:

State of the economy next period	Bad	Average	Good
Probability of that state	0.2	0.5	0.3
Go Forward Corp's predicted return in that state	-10.6%	9.4%	22.2%

What is the overall expected return for Go Forward Corp next period?Answer to 1 decimal point in units of percent (thus for13.48% enter 13.5)

4. ASSUME that in 25 years you will need $500,000 for your retirement (i.e. retirement is actually 25 years away, and you want to have saved $500,000). How much money would you have to put into a banktodayto accumulate this if your money will earn 9.0% per year (assumeannual compounding)? Answer to the nearest dollar (i.e.units of dollars with no decimals).

5.You are considering the purchase of an investment that would pay you $7681= per year for Years 1-5, $3,000 per year for Years 6-8, and $2,000 per year for Years 9 and 10. If you require an8.5 percent rate of return, and the cash flows occur at the end of each year, then what is the most that you would be willing to pay for this investment (i.e.what is the PV of the CF stream)?