1. An outlay of $180,000 is expected to yield the following cash flows: Year Net Cash Flow 1 75,000 2 55,000 3 60,000 4 25,000 5 15,000 6 10,000 The cost of capital is 12 percent. What is the payback period?
2. You are going to invest with your friend's business. She asks that you give her $5,000 today and she will pay you $2,010.75 over the next three years. What is the IRR on this cash flow? Round to the nearest whole %.
3. Comment on the significance of the Sherman Anti-Trust Act and what applicability does it hold for businesses today versus businesses that were in existence at the time the act was signed into law. Please provide an example to illustrate your answer.