1. Gary loves shopping for electronic gadgets and has decided to start saving. At the end of each year, he will deposit $2,000 in his local bank, which pays an annual interest of 6%. How much will he save by end of eight years?
2. Suppose SAW Water Works Inc. is evaluating a proposed budget that will require an initial investment of $100,000. The project is expected to have the following cash flows: Year Cash Flow 1 $ 50,000 2 $ 75,000 3 $150,000 The Weight Average Cost of Capital (WACC) is 9%. Based on the cash flows, what is this project's Net Present Value (NPV)?