You have just received a windfall from an investment you made in a friend's business. She will be paying you $ 36 comma 079 at the end of this year, $ 72 comma 158 at the end of next year, and $ 108 comma 237 at the end of the year after that (three years from today). The interest rate is 5.6 % per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?