1. Project K costs $55,000, its expected cash inflows are $15,000 per year for 11 years, and its WACC is 9%. What is the project's payback? Round your answer to two decimal places.
2. How is financial leverage related to bankruptcy, and what are the long-lasting effects both personally and for a business in filing bankruptcy?
3. Brenda Young desires to have $10,000 nine years from now for her daughter’s college fund. If she will earn 5.6 percent (compounded annually) on her money, what amount should she deposit now?