1. Hanna Co. is debating whether to purchase Mark, Inc. Hanna thinks that Mark can generate cash flows of $16,500, $12,500, and $17,700 over the next three years respectively. After that time, Hanna feels the business will be worthless. Hanna has determined that a rate of return of 9 percent is applicable to this potential purchase. What is Hanna willing to pay today to purchase Mark, Inc.?
$39,326.26
$36,634.45
$27,569.81
$43,567.90
2. You are considering buying a house. your mortgage requires monthly payments of 2500 for 360 months. the interest rate is fixed at 4%. what is the present discounted value of your mortgage?