1. In 2005, Joelle spent $5,500 on her health care. If this amount increased by 2 percent per year, what would be the amount Joelle spent in 2015 for the same health care? Hint: Use Exhibit 1-A. (Round time value factor to 3 decimal places and final answer to the nearest whole dollar.)
2. Consider the following cash flows for years 0-4, respectively: -$1,512; $8,586; -$18,210; $17,100; -$6,000. a. How many IRRs are there? What are they? b. When do you think this project should be pursued.
3. Janicex Co. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next three years, with the growth rate falling off to a constant 6 percent thereafter. If the required return is 11 percent and the company just paid a dividend of $1.15, what is the current share price?